Financial Distress in The Hospitality, Tourism, And Restaurant Sectors During the Covid-19 Pandemic

Abstract

This study seeks to objectively investigate the relationship between financial distress in the hospitality, tourism, and restaurant industries listed on the Indonesia Stock Exchange and (1) leverage, (2) liquidity, and (3) business size.The research used secondary data with the population of all service companies in the hospitality, tourism, and restaurant sectors listed in the Indonesia Stock Exchange in the 2020 quarter during the covid-19 pandemic. The research sample was selected using the purposive sampling method resulted in a total of 15 companies. Logistic regression with binary logit was used to analyze the data. The research's empirical findings demonstrate that (1) leverage has a favorable but insignificant impact on financial distress, whereas business size has a negative and significant impact on financial distress, (2) liquidity has a negative and no significant impact on it., and simultaneously, leverage, liquidity, Financial distress is significantly influenced by and firm size. in the hospitality, tourism, and restaurant sectors listed in Indonesia Stock Exchange.