There are several early warning systems supporting assessing going-concern risk. Some of them concentrate on non-financial aspects of activity and some of them (like discriminant analysis eg. Altman Z-score) focus on financial data. I would like to know what is your opinion and experience about negative equity of an entity - is it factor that affect increase in going-concern risk? Have you heard about studies on relationship between negative equity and company's discontinuance?
Yes. We lend to early stage start-ups, and for a lender, negative equity means the entity is no longer a lendable entity/
yes i think
You can read similar experiences in this article
http://eprints.usm.my/36391/1/AAMJ_14-1-1.pdf
Dear Arezoo and Emmanuel, Thanks a lot for your support. I search for additional studies that tested potential negative equity impact on continuance problems, and your answers support my opinion.
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