Effect Of Liquidity, Solvency, Quality Audit, Audit Opinion Prior Years, Company’s Growth, Managerial Ownership And Institutional Acceptance Of Going Concern Opinion

Abstract

Increasing competition requires companies to set the right strategy in order to survive. If the company can’t survive then it would quickly go bankrupt. Therefore the company seeks to maintain the continuity of his life (going concern). Company's survival is always connected with the ability of management to manage the company. If management is poor in its management, it will affect the financial statements that cause the auditor issued a going concern opinion. This study aims is to test empirically the effect using with current liquidity and solvency ratio using with total debt to total assets ratio, quality audit, the audit opinion the previous year, growth companies that using with sale growth ratio, managerial and institutional ownership that may affect receiving going concern audit opinion on the manufacturing companies listed on the Stock Exchange. The population of this study is a manufacturing company listed on the Indonesia Stock Exchange (BEI) in the period 2008-2010. Samples from this study there are 23 manufacturing companies that can be downloaded through the website www.idx.co.id for 3 periods of sampling method is purposive sampling decision. Dependent variable using nominal data in the form of the Going Concern Audit Opinion (GCAO) categorized 1, and Non-Going Concern Audit Opinion (NGCAO) categorized 0. The results of studies using logistic regression test showed that there were 31 companies that received going-concern audit opinion for 87.1% and the remaining 38 companies to receive non going-concern opinion by 94.7%. Testing is in the can that of the 7 variables just prior year's audit opinion variables are significantly influence the acceptance of going-concern audit opinion.