Do going concern disclosures in the management report and audit report signal bankruptcy risk? Evidence from privately held firms

IF 2.1 4区管理学 Q2 BUSINESS, FINANCE

International Journal of Auditing Pub Date : 2021-12-28 DOI:10.1111/ijau.12257

Irina V. Alexeyeva, S. Sundgren

引用次数: 6

Abstract

This article provides evidence of the relations between disclosures in the management report of conditions that could challenge the continuance of operations, auditors' going concern reporting and the likelihood of bankruptcy for privately held firms in an environment characterized by low litigation risk. We conduct a matched case – control study using data for 125 firms filing for liquidation bankruptcy and 125 non-bankrupt firms. The results show that disclosures in the management report and auditors' going concern modifications are positively associated with the likelihood of bankruptcy and that their predictive ability is incremental to the control factors. Despite the lower litigation pressure facing private Swedish firms, the informational value of going concern disclosures is comparable with those in litigious environments.

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管理报告和审计报告中的持续经营披露是否预示着破产风险？来自私营公司的证据

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来源期刊

International Journal of Auditing BUSINESS, FINANCE-

CiteScore

3.70

自引率

15.00%

发文量

期刊介绍： In addition to communicating the results of original auditing research, the International Journal of Auditing also aims to advance knowledge in auditing by publishing critiques, thought leadership papers and literature reviews on specific aspects of auditing. The journal seeks to publish articles that have international appeal either due to the topic transcending national frontiers or due to the clear potential for readers to apply the results or ideas in their local environments. While articles must be methodologically and theoretically sound, any research orientation is acceptable. This means that papers may have an analytical and statistical, behavioural, economic and financial (including agency), sociological, critical, or historical basis. The editors consider articles for publication which fit into one or more of the following subject categories: • Financial statement audits • Public sector/governmental auditing • Internal auditing • Audit education and methods of teaching auditing (including case studies) • Audit aspects of corporate governance, including audit committees • Audit quality • Audit fees and related issues • Environmental, social and sustainability audits • Audit related ethical issues • Audit regulation • Independence issues • Legal liability and other legal issues • Auditing history • New and emerging audit and assurance issues