This paper examines the impact of going concern opinions on the market value of firms. Our results suggest that firms with going concern opinions tend to have lower market value than firms without such opinion modification. In addition, we find that the pricing multiples of earnings are lower...

In this study, we attempt empirically to investigate the relationship between audit quality and the probability that a financially distressed company would receive a going concern opinion. Auditor decision-making in the presence of going concern uncertainties may be characterized as a two-stage...