European Financial Management, Vol. 12, No. 5, 2006, 789–816 Management Going-concern Disclosures: Impact of Corporate Governance and Auditor Reputation Jinn-Yang Uang National Defense University, No.1, Sec. 4, Roosevelt Road, Taipei, Taiwan. jyuang@rs590.ndmc.edu.tw David B. Citron Cass Business School, City University, 106 Bunhill Row, London, EC1Y 8TZ, UK. D.B.Citron@city.ac.uk Sudi Sudarsanam Cranfield School of Management, Cranfield, Bedford MK43 0AL, UK. p.s.sudarsanam@cranfield.ac.uk Richard J. Taffler Management School, University of Edinburgh, William Robertson Building, 50 George Square, Edinburgh EH8 9JY, UK. Richard.Taffler@ed.ac.uk Abstract The UK regulatory requirements relating to going-concern disclosures require directors to report on the going-concern status of their firms. Such directors have incentives not to report fairly in the case of financially-distressed firms. We expect effective corporate governance mechanisms will encourage directors to report more truthfully in such situations. This paper tests this proposition explicitly using a large sample of going-concern cases over the period 1994–2000. We find that whereas auditors’ going-concern opinions predict the subsequent The authors would like to thank Jon Grant and Stephen Lennard at the UK Auditing Practices Board, Martyn Jones, Technical Partner at Deloitte & Touche, discussants and participants at the 2004 Financial Reporting and Business Communication Conference, University of Cardiff, the 2005 Financial Management Association meeting in Chicago and the 2005 European Financial Management Symposium in European Corporate Governance at the University of Leeds for their assistance with the paper. We would also like particularly to acknowledge an anonymous referee of this paper whose comments have significantly strengthened it. We are also indebted to our research assistants, Lisa Liu and Binsheng Qian for all their hard work. Corresponding author: Richard J Taffler. C  2006 The Authors Journal compilation C  2006 Blackwell Publishing Ltd, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA.