Abstract:
The purpose of this research is to examine effect of corporate governance role to the possibility of company in receiving going concern audit opinion by auditor. The independent variables used in this study are Proportion of Institutional ownership, Managerial Ownership, Independent Commissioners, and Audit Committee.
This research used 68 manufacturing companies in basic industry, which listed on Stock Exchange in the period 2010-1014 as sample. The samples were selected using purposive sampling method and obtained 39 companies with 5 periods to run for analysis. With total of 195, the data were analyzed using logistic regression analysis model.
The result shows that proportion of institutional ownership influence possibility of company receives going concern audit opinion. On other hand, proportion of managerial ownership, independent commissioner, and audit committee has no effect on issuance of going concern audit opinion. This study only use Corporate Governance to analyze the probability of going concern audit opinion, so for further research is expected to add another corporate governance variables, financial variables, and obtain the complete data from IDX central office in Jakarta.
