The Impact of Liquidity, Asset Efficiency, Leverage, and Profitability on Firm Value: Evidence from Hotel, Resort, and Cruise Sub-Industry Companies Listed on the Indonesia Stock Exchange, 2020–2025

Abstract

The hotel, resort, and cruise sub-industry was among the sectors most severely affected by the COVID-19 pandemic, and its firm value, proxied by Price to Book Value (PBV), has fluctuated sharply during recovery. Prior studies on the financial determinants of firm value report inconsistent results, and few have examined this sub-industry across the pre- and post-pandemic period, leaving a clear research gap. This study analyzes the effect of Current Ratio (CR), Total Asset Turnover (TATO), Debt to Equity Ratio (DER), and Return on Asset (ROA) on PBV of 17 hotel, resort, and cruise companies listed on the Indonesia Stock Exchange during 2020-2025 (102 firm-year observations). Using a quantitative approach with panel data regression, the Random Effect Model (REM) with White cross-section standard errors was selected as the best model. The results show that CR and DER have a positive and significant effect on PBV, while TATO and ROA have no significant effect. Simultaneously, all four variables significantly affect PBV. The novelty of this study lies in showing that, within a recovering, asset-intensive tourism sector, liquidity and capital-structure signals dominate investors' valuation judgments over asset-efficiency and profitability signals.