A Prediction Model of Going-Concern - From the Viewpoint of Sustainable Development

The export-oriented firms face a lot of international environmental pressure due to the regulations of international environmental protection enacted by developed countries. Therefore, this paper based on the viewpoint of sustainable development attempts to establish the prediction model of going-concern of Taiwan including environmental indicators, financial indicators and corporate governance indicator. Making use of logistic regression model carried out empirical research. The results of this study are as follows: first, liability ratio, return on assets, cash flow ratio and percentage of ownership held by the directors and supervisor have information content for the prediction of going-concern; second, the results of this study provided partial support for the environmental indicators, the behavior of penalty and indemnity due to environmental pollution and the transparency of environmental information provide information content in the prediction model of going-concern.