Financial Performance and CSR as Determinants of Auditors' Going Concern Judgments: Evidence from Indonesian Infrastructure State-Owned Enterprises

Rengga Anisa Arpi Mevia; Lenda Komala; Andri Gunawan

doi:10.58777/rag.v4i2.656

Authors

Rengga Anisa Arpi Mevia Faculty of Economics and Business, YARSI University, Jakarta
Lenda Komala Faculty of Economics and Business, YARSI University, Jakarta
Andri Gunawan Faculty of Economics and Business, YARSI University, Jakarta

DOI:

https://doi.org/10.58777/rag.v4i2.656

Keywords:

Financial Performance, Current Ratio, Return on Assets, Debt to Asset Ratio, Corporate Social Responsibility, Going Concern Opinion, State-Owned Enterprises (SOEs)

Abstract

This study examines the effects of financial performance and Corporate Social Responsibility (CSR) on auditors' going concern opinions among Indonesian infrastructure State-Owned Enterprises (SOEs) during the 2019–2024 period. Financial performance is measured using the Current Ratio (CR), Return on Assets (ROA), and Debt-to-Asset Ratio (DAR). In contrast, CSR is measured using the Corporate Social Responsibility Disclosure Index (CSRDI) based on annual report disclosures. The dependent variable is coded as 1 for firms receiving a going concern opinion and 0 otherwise. Using a quantitative approach, this study analyzes 54 firm-year observations from nine infrastructure SOEs through logistic regression. The findings indicate that profitability, leverage, and CSR significantly influence auditors' going concern opinions, whereas liquidity does not have a significant effect. These results suggest that auditors consider both financial and non-financial information when assessing a company's ability to maintain business continuity. This study contributes to the literature by integrating financial performance and CSR within a single analytical framework and providing updated evidence from Indonesian infrastructure SOEs during the pandemic and post-pandemic periods, a research context that has received limited empirical attention.

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