volume 35, issue 1, P24-42 2019
DOI: 10.1108/maj-09-2018-2020
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Brett S. Kawada, Jeff Jundong Wang

Abstract: Purpose This study aims to examine a firm’s disclosure properties subsequent to receiving a going-concern opinion. Design/methodology/approach A difference-in-difference research design was used to control for endogeneity issues. Annual report readability is used as a proxy for firm disclosure. Findings The results indicate a negative and significant association between issuance of a going-concern report to a firm and the firm’s readability index in the subsequent year. In other words, after receiving a g…

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