The Effect of Liquidity, Profitability, and Solvability on Going Concern Audit Opinions on the Property & Real Estate Subsector

Abstract

This study was chosen because it has a specific purpose which is to see whether there is an influence in generating profit (profitability), liquidity, and solvency on acceptance for business continuity. The opinion of the `sustainability of the industry isone of the opinions given by management and independent auditors by explaining the survival of a company that has been examined. Tests carried out using the information retrieval steps used are documentation information that is opened via the website, including www.idx.co.id. Tests carried out by observing the financial statements of property and real estate companies to get overall data, the need for future measurement of the sustainability of the industry against the effects of earnings income, meet short-term obligations, and the level of risk in corporate debt. The results of research tests that have been completed are carried out using statistical test results namely logistic regression analysis. Completion of the completed test is therefore obtained between liquidity using the current ratio and profitability using the return on equit ratio does not have a significant effect on the sustainability of business activities. Whereas the solvency (DER) has a significant effect on business survival. This research has the benefit of knowing the impact of the company's survival information with the relationship between profitability, liquidity, and solvency in the sale and purchase business as well as building leases which areincluded in the Stock Exchange category in the 2017-2018 Indonesia. This test uses secondary data in the form of annual reports from businesses that are included in the Exchange listing in 2 periods. Samples of 14 industries in the field of land, building, etc. are listed on the Stock Exchange in 2017-2018. The sample termination system used is Purposive Sampling.