| Going-concern originates from an assumption of accounting, which is afundamental concept. When the enterprise internal activities appear uncertain matters,there need independent certified public accountants who master professionalknowledge to determine whether the enterprise has the ability to continue operatingand issue GCO. Economic globalization cause huge risks to the enterprises, so theirability of going-concern is vital to the stakeholder.With the international convergence of accounting, auditing standards progressing,the Ministry of Finance issued a "China CPA Auditing Standards No.1324th-goingconcern " in February15,2006, replaced the original seventeenth standards, hadachieved the fully connected with international auditing standards from content andform and further defined the responsibilities of management and certified publicaccountants and improved the operability.Based on this background, this study take China’s first issued GCO from2006to2011as a sample, using the method of empirical analysis studied the informationcontent of China’ GCO since2006. The study found that there was no significantnegative response after the release of GCO in China’s capital market; In furtherresearch, eliminating GCO and using the method of matching it as control group withunqualified opinion to compare and analyze, the result turned out to be no quickresponse after the release of GCO, but there was significantly negative response evenbefore it released in China’s capital market no quick response after the release of GCO.The results are consistent with Dodd et al（1984）. After eliminated the sample withfinancial problem through predicting financial distress model calculation andcompared with control group, it shows that there was significant negative reaction theday GCO released and the day after, which explained that GCO did have informationcontent and provided valuable decision-making suggestions to shareholders. |
PDF Full Text Request