The Effect of Liquidity, Leverage, Activity and Institutional Ownership on Financial Distress with Company Size as a Moderating Variable in the Hotel Industry

Corona Virus Illness 2019 has turned into a worldwide pandemic that presents a number of dangers. In an effort to reduce the spike in cases, the government has issued restrictions or limitations as stipulated in Government Regulation No. 21 of 2020. The restrictions are implemented by, among other things, closing access in and out of the country, restricting travel, and reducing public mobility. The hospitality industry is one of the sectors most affected by the rapid spread of the virus. The study focuses to investigate the influence of financial performance with indicators namely Current Ratio (CR), Debt to Equity Ratio (DER), Total Asset Turn Over (TATO) and Institutional Ownership (KI) on Financial Distress (FD) with Firm Size (Total Asset) as moderating. Annual data for the period of observations from 2020 to 2022 were used. Purposive Sampling is used and found four companies with certain criteria within 3 years of observations which made the total number of observations as much as 90. There is no significant partial influence between the liquidity variable and the financial distress variable in hotel companies listed on the IDX. There is a significant partial influence between the leverage variable and the financial distress variable in hotel companies listed on the IDX. There is a significant partial influence between the activity variable and the financial distress variable in hotel companies listed on the IDX. There is no partial influence between the institutional ownership variable and the financial distress variable in hotel companies listed on the IDX. Partially, there is no influence of the moderating variable of company size on the influence of the liquidity variable on financial distress in manufacturing companies listed on the IDX. Partially, there is a moderating influence of company size on the influence of activity variables on financial distress in hotel companies listed on the IDX. Partially, there is a moderating influence of company size on the influence of activity variables on financial distress in manufacturing companies listed on the IDX. Partially, there is no moderating effect of company size on the influence of institutional ownership variables on financial distress in manufacturing companies listed on the IDX. (Abstract)