Pembimbing : Wiwik Pratiwi

ABSTRACT :

This research aims to empirically examine the influence of (1) leverage, (2) liquidity, and (3) firm size on financial distress in the hospitality, tourism, and restaurant sectors listed in the Indonesia Stock Exchange.

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 empirical results from the research show that (1) leverage has positive and no significant effect on financial distress, (2) liquidity has a negative and no significant effect on financial distress, whereas (3) firm size has a negative and significant effect on financial distress, and simultaneously, leverage, liquidity, and firm size have significant effect on financial distress in the hospitality, tourism, and restaurant sectors listed in Indonesia Stock Exchange.

Keywords: Leverage, Liquidity, Firm Size, and Financial Distress