COVID-19 government grants, liquidity indicators and going concern uncertainty

Erwin Hardeman () and Robert Bertrand ()
Additional contact information
Erwin Hardeman: Maastricht University, Maastricht, Netherlands
Robert Bertrand: Maastricht University, Maastricht, Netherlands

Maandblad Voor Accountancy en Bedrijfseconomie Articles, 2022, vol. 96, issue 3-4, 75-85

Abstract: The purpose of this study is to enhance our understanding of the effect of the liquidity position on going concern reporting during the COVID-19 liquidity crisis. The first possible effects of COVID-19 as they occur in 2020 are enclosed in the financial statements of 2019 as an event after the balance sheet date. By studying a sample of 579 financial statements of private (non-listed) companies that are subject to a statutory audit in the Netherlands, we find that both liquidity indicators and government grant applications result in a higher propensity to issue a mandatory going concern paragraph in the financial statements. Additionally, we find no evidence that liquidity levels prior to the COVID-19 pandemic crisis affect an application for a government grant.

Keywords: COVID-19; private; companies; business; support; programs; government; grants; liquidity; going; concern (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mab-online.nl/article/77531/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arh:jmabec:v:96:y:2022:i:3-4:p:75-85

DOI: 10.5117/mab.96.77531

Access Statistics for this article

Maandblad Voor Accountancy en Bedrijfseconomie Articles is currently edited by Chris D. Knoops

More articles in Maandblad Voor Accountancy en Bedrijfseconomie Articles from Maandblad Voor Accountancy en Bedrijfseconomie
Bibliographic data for series maintained by Teodor Georgiev ().