Going Concern Opinion, Managementkompetenz und Insolvenzwahrscheinlichkeit

Matthias Heinrichs examines the extent to which reflexive, i.e., self-fulfilling or self-destructive forecasting effects occur in Going Concern-modified audit opinions, depending on the competence of management. The author first presents the essential conceptual and normative frameworks and findings from previous studies. Through an empirical investigation, it is demonstrated for the first time that a self-fulfilling effect that exists at medium management competence increases as management competence decreases. The study also sheds light on this relationship in the context of leeway for action and agency problems arising from external financing.