The DOI matches its Crossref record; 22 of the 22 references it cites were found in a registry or an index.
Investor Reaction to Going Concern Audit Reports
Open accessAbstract
ABSTRACT: The literature provides mixed evidence on whether investors find audit reports modified for going concern reasons to be useful. Using a substantially larger sample than previous studies, we observe negative excess returns when the going concern audit report (GCAR) is disclosed. We find that the reaction is more negative if the GCAR cites a problem with obtaining financing, suggesting that the GCAR provides new information to investors. Also, the reaction is more adverse if the GCAR triggers a technical violation of a debt covenant that restricts the firm from getting a GCAR. The evidence suggests that institutional investors drive the reaction to the GCAR, since there is no detectable reaction at low levels of institutional ownership. The market reaction gets more negative as the level of institutional ownership increases, and there is a decline in institutional ownership after the GCAR is issued. We attribute these results to sophisticated investors’ awareness of the firm’s financing needs and the covenants carried by the firm’s debt.
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Audit Firm Size and Going-Concern Reporting Accuracy
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A review of archival auditing research
DeFond, M., & Zhang, J. (2014) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2014.09.002 · Cited by 3,188
Consequences of adopting an expanded auditor’s report in the United Kingdom
Gutierrez, E., Minutti-Meza, M., Tatum, K. W., & Vulcheva, M. (2018) · Review of Accounting Studies · doi:10.1007/s11142-018-9464-0 · Cited by 382
Audit Reporting for Going-Concern Uncertainty: A Research Synthesis
Carson, E., Fargher, N. L., Geiger, M. A., Lennox, C. S., Raghunandan, K., & Willekens, M. (2013) · AUDITING: A Journal of Practice & Theory · doi:10.2308/ajpt-50324 · Cited by 359
Evidence on going concern reporting before and after ASU 2014–15
Bakarich, K., & Baranek, D. (2020) · Accounting Research Journal · doi:10.1108/arj-06-2020-0165 · Cited by 4
Metadata
- Authors
- Menon, K., & Williams, D. D.
- Venue
- The Accounting Review
- Publisher
- American Accounting Association
- Published
- 2010-11-01
- Volume
- 85
- Issue
- 6
- Pages
- 2075-2105
- ISSN
- 0001-4826 (ISSN-L)
- 1558-7967
- OpenAlex
- W2043217646
- Cited by
- 254
- References
- 22
- FWCI
- 33.76
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
