Financial Characteristics Affecting the Ability of Going Concern in Jordanian Corporations: An Analytical Study for Auditors' Report

Abstract

The study sought to shed light on the financial characteristics affecting ability of going concern in Jordanian Corporations. To achieve this objective, the research used the correlation approach seeking to identify any correlation between two or more variables examined in the context of the study. The researcher divided the study into two sections; the first addressed the theoretical background of the study in which the researcher examined the concept of company going concern and the correlation between ratios and predicting companies' going concern, the importance of auditors' reports regarding the companies' going concern. The second section was experimental as the researcher used the logistic regression analysis. Results of the study indicated a significant effect for companies' liquidity and profitability on Jordanian companies' auditors' decision when reporting concerns about the going concern of the company. The study made some recommendations including the need for auditors to take other variables into consideration such as solvency and cash flows indicators when reporting concerns about the going concern of the company.