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Do Auditors Start the Clock? First‐Time Going Concern Opinions and Time to Bankruptcy

James Routledge

Accounting and Finance2026https://doi.org/10.1111/acfi.70178article
AJG 2ABDC A
Weight
0.50

What the paper says

Going concern audit opinions ( GCOs ) alert stakeholders to substantial doubt about a firm's ability to continue operating. While prior research has examined the value of GCOs as predictors of bankruptcy, this study examines whether they influence the timing of bankruptcy. The survival analysis results for a sample of Australian public companies that entered bankruptcy administration show that the issuance of a first‐time GCO is associated with a significantly shorter time to bankruptcy. In contrast, repeat GCOs do not have a significant timing effect. The impact of first‐time GCOs is strongest when the opinion is unexpected and for audits conducted by Big 4 firms. These findings are consistent with first‐time GCOs prompting stakeholder responses that shorten the time to bankruptcy.

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https://doi.org/https://doi.org/10.1111/acfi.70178

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@article{james2026,
  title        = {{Do Auditors Start the Clock? First‐Time Going Concern Opinions and Time to Bankruptcy}},
  author       = {James Routledge},
  journal      = {Accounting and Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/acfi.70178},
}

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Do Auditors Start the Clock? First‐Time Going Concern Opinions and Time to Bankruptcy

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.