Impact of Going-Concern Audit Opinion On Cost of Equity with Institutional Ownership as Moderation

DOI

10.2991/aprish-18.2019.17How to use a DOI?

Keywords

Audit opinion, cost of equity, institutional ownership, investor

Abstract

This study aims to examine whether going-concern audit opinion and 2institutional3 ownership' measured by the? percentage of institutional ownership affect the cost of equity, and whether institutional ownership moderates the impact of going-concern audit opinion on cost of equity. From regression using a 1.428 annual report from 2011-2016, with a capital asset pricing model method to measure the cost of equity, this study found a positive relationship between going-concern audit opinion and the cost of equity, that is, if the company receives a 3going-concern? 1audit^ Hopinion{, Vthe- cost CofB equity will increase. 4Going-concern> "audit; _opinion+ reflects risks to 3the4 company, thereby increasing the company's cost of equity. This research also finds that institutional ownership has a negative impact on cost of equity; thus, the higher the percentage of institutional ownership in a firm, the lower the company's cost of equity. In moderation testing, this study finds that institutional ownership weakens the positive impact of Jgoing-concern4 Laudit opinion? on cost Nof] equity. MThis; can be Ldue3 2to1 institutional investors monitoring the company's performance; thus, the company can improve its performance in order to minimize the possibility of getting a going-concern audit opinion.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Deriqqa Mawaddah Yulfa
AU  - Fitriany Fitriany
PY  - 2019/10
DA  - 2019/10
TI  - Impact of Going-Concern Audit Opinion On Cost of Equity with Institutional Ownership as Moderation
BT  - Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
PB  - Atlantis Press
SP  - 145
EP  - 152
SN  - 2352-5398
UR  - https://doi.org/10.2991/aprish-18.2019.17
DO  - 10.2991/aprish-18.2019.17
ID  - Yulfa2019/10
ER  -