Chapter One — 1.1 Background to the Study

In recent years, Going Concern Assessment has emerged as a critical factor shaping profitability of listed firms across organizations operating in and around Selected Listed Manufacturing Firms in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how going concern assessment relates to profitability of listed firms has become an important area of both scholarly and practical concern.

Within the context of Selected Listed Manufacturing Firms in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of going concern assessment on profitability of listed firms, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on going concern assessment, there remains limited consensus on the precise nature of its relationship with profitability of listed firms, particularly within Selected Listed Manufacturing Firms in Nigeria. Many organizations continue to make decisions about going concern assessment without a clear, evidence-based understanding of how those decisions ultimately affect profitability of listed firms. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Going Concern Assessment on profitability of listed firms in Selected Listed Manufacturing Firms in Nigeria.
2. To assess the extent to which going concern assessment influences profitability of listed firms within the study area.
3. To identify the challenges associated with going concern assessment in relation to profitability of listed firms.
4. To recommend strategies for optimizing going concern assessment in order to improve profitability of listed firms.

1.4 Research Questions

1. What is the effect of going concern assessment on profitability of listed firms in Selected Listed Manufacturing Firms in Nigeria?
2. To what extent does going concern assessment influence profitability of listed firms within the study area?
3. What challenges are associated with going concern assessment in relation to profitability of listed firms?
4. What strategies can be adopted to optimize going concern assessment in order to improve profitability of listed firms?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around profitability of listed firms. For managers and practitioners within Selected Listed Manufacturing Firms in Nigeria, the study provides practical insight into how going concern assessment can be better managed. Finally, it contributes to the academic literature on accounting by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Going Concern Assessment and its relationship with profitability of listed firms within the context of Selected Listed Manufacturing Firms in Nigeria. It reflects a MSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.