The Impacts of Corporate Governance, Audit System to Business Failure of Going-concern Firms

  • Yunsheng Hsu National Chung Hsing University
  • Chi-Chen Wang National Defense University
  • Tzeu-Chen Han National Penghu University


This study examines the companies in which auditors have first issued going concern suspect, focusing specifically on impact factors influential to the company’s survival period as well as analyzing when these companies will most likely be delisted. Empirical results imply that the first five years is the critical period for delisting after the going concern suspect. The paper also indicates that the mechanism of corporate governance and audit system are also decisive factors to companies with going concern suspicion whether they will be able to continue.

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