THE EFFECT OF LIQUIDITY, LEVERAGE AND COMPANY VALUE ON Z-SCORE VALUE AS A PREDICTION OF FINANCIAL DISTRESS (Case Study of Companies in the Hotel Restaurant and Tourism Sector Listed on the Indonesia Stock Exchange for the 2016-2020 Period)

Abstract

This study aims to determine the effect of liquidity, leverage and firm value on the Z-score as a predictor of financial distress. The pollution in this study is that there are 9 companies in the hotel, restaurant and tourism sectors listed on the Indonesia Stock Exchange in 2016-2020 according to the characteristics determined by the researchers. Sample selection using saturated sample method and obtained 9 companies. The data collection method uses data triagulation, using the companys annual financial report data obtained from the Indonesia Stock Exchange (IDX) website and each companys website. This research method is causality with data analysis method using panel data regression analysis. The selected model is the fixed effect model. The results show that liquidity has a positive and significant effect on the Z-score value as a predictor of financial distress, while leverage and firm value have no effect on the Z-score as a predictor of financial distress in companies in the hotel, restaurant and tourism sectors listed on the Indonesia Stock Exchange in 2016 -2020. KEYWORDS: liquidity, leverage, firm value, Z-score, financial distress