Financial Management Strategy as a Mitigation Factor in the Acceptance of Going Concern Opinion

Sugeng Riyadi; Prita Andini; Dewi Pratiwi Yuwono

Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia

Research Article

Financial Management Strategy as a Mitigation Factor in the Acceptance of Going Concern Opinion

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@INPROCEEDINGS{10.4108/eai.20-1-2018.2281894,
    author={Sugeng  Riyadi and Prita  Andini and Dewi Pratiwi  Yuwono},
    title={Financial Management Strategy as a Mitigation Factor in the Acceptance of Going Concern Opinion},
    proceedings={Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia},
    publisher={EAI},
    proceedings_a={WMA-1},
    year={2019},
    month={9},
    keywords={financial management strategy factors mitigation going concern opinion},
    doi={10.4108/eai.20-1-2018.2281894}
}

Sugeng Riyadi
Prita Andini
Dewi Pratiwi Yuwono
Year: 2019
Financial Management Strategy as a Mitigation Factor in the Acceptance of Going Concern Opinion
WMA-1
EAI
DOI: 10.4108/eai.20-1-2018.2281894

Sugeng Riyadi¹^,*, Prita Andini², Dewi Pratiwi Yuwono³

1: Magister of Accounting, Universitas Budi Luhur, Ciledug Raya, South Jakarta, Indonesia
2: Economic and Business Faculty, Universitas Budi Luhur, South Jakarta, Indonesia
3: Magister of Management, Universitas Budi Luhur, Ciledug Raya, South Jakarta, Indonesia

*Contact email: sugeng.riyadi@budiluhur.ac.id

Abstract

The research purpose is to test management strategy consisting of stock emission strategy, strategy to add new debt or debt restructuring, unproductive asset sale strategy and cost reduction in tackling acceptance of going concern opinion. The population are manufacturing companies which are listed on the Indonesia Stock Exchange, obtained a sample of 30 companies during the research period. Analytical tool used logistic regression. This research finds that; (i) shareholder strategy, strategy to add new debt or debt restructuring, and fixed asset strategy as a factor considered by the auditor in giving a going concern audit opinion (ii) reduction / cost efficiency strategy not as an auditor's consideration in giving a going concern opinion (iii) financial-based control variables into consideration of the Auditor in providing a going concern opinion.

Keywords: financial management strategy factors mitigation going concern opinion

Published: 2019-09-20
Publisher: EAI

: http://dx.doi.org/10.4108/eai.20-1-2018.2281894