Financial Distress Analysis with Firm Size as a Moderating Variable in the Restaurant, Hotel, and Tourism Sub-Sector Companies on the Stock Exchange of Indonesia

Abstract

A financial distress decline in financial health a bussiness had before bankruptcy, so it is important for companies to analyze financial distress as a form of prevention from the start. The investigation’s goal was to examine financial distress using financial ratios that were tempered by firm size. The sample for this analysis consists of 41 firms operating in the restaurant, hotel, and tourist industries that are listed on the Stock Exchange of Indonesia between 2018 - 2021. These studies used purposive sampling techniques to gather samples from 23 different businesses. The data testing procedure employs Moderated Regression Analysis (MRA) in SPSS Version 26. Profitability and leverage were shown to be major factors in the probability of financial trouble. There is little correlation between liquidity and the likelihood of economic hardship. Profitability and leverage can exacerbate financial difficulty, although a company's scale can mitigate this. However, the impact of liquidity on financial hardship can't be dampened by a company's size.

Análisis combinado de factores del fracaso empresarial en el sector turístico español

“…A este respecto, estudios en este sector muestran la liquidez como un indicador de carácter general para el riesgo de quiebra (Wieprow & Gawlik, 2021), sin diferenciar el efecto conjunto con el tamaño de la entidad. Sin embargo, en el caso de la industria hotelera española no se encuentra esta relación (Gémar et al, 2016) que sí se recoge para el sector en otros países (Riono Putri & Ichsanuddin Nur, 2023;Süer, 2022) aunque considerando su relación con la rentabilidad.…”