Özet:

In accordance with the going concern concept of accounting, financial statements should be prepared under the assumption that companies have an unlimited life and will continue their activities in the foreseeable future. In this framework, it is the responsibility of management to ensure continuity of the operations of the business, and to take essential measures in case of circumstances that may endanger their going concern status. The purpose of this study is to determine the financial factors expected to affect the ability of BIST SME Industry Index companies to continue their going concern status within the scope of ISA 570, the Going Concern Standard. In line with this purpose, the financial factors affecting the companies’ going concern status are analyzed with panel data regressions, using the data included in the 2015-2019 financial reports of the companies listed in the BIST SME Industry Index. The findings show that there is a positive relation between the “Altman Z-Score”, the dependent variable that represents the continuity of operations of the BIST SME Industrial enterprises, and the “return on assets ratio” and the “interest coverage ratio”, and a negative relationship between the Z-score and the “financial leverage ratio”.

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