Key Indicators for Determining Capital Structure for Public Companies in Indonesia Rendy Mirwan Aspirandi 1 , Riyanto Setiawan Suharsono 2 rendymirwanaspirandi@unmuhjember.ac.id 1 , riyantosetiawan@unmuhjember.ac.id 2 Universitas Muhammadiyah Jember, Karimata Street Number 49 Jember 123 Abstract. This research has the purpose to explain the influence of assets consisting of asset structure (fixed assets ratio), liquidity (current ratio) and solvency (DAR) on capital structure (LTDER). This research has the population of tourism and hospitality companies that go public listed on the Indonesian Stock Exchange in the period 2018-2020, with total 35 companies, and using a sample technique, namely purposive sampling with a sampling technique with certain conditions, in order to obtain 22 companies that fullfills the criteria. sampling. This research uses data from secondary data collected by non-participant observation method. This research uses multiple linear regression analysis techniques. This paper produces research finding that the variable structure of the asset structure has no influence on the capital structure, the liquidity has an influence on the capital structure, and the solvency has an influence on the capital structure. Keywords: capital structure, covid-19, tourist and hotel 1 Introduction The definition capital structure is one of the indicators used in the company's operations. Company operation must be optimize its capital structure, so that its performance can be assessed both by creditors and investors. To optimize the capital structure, the combination of the amount of debt and equity in such a way as to minimize the company's cost [1]. The key indicators that can be considered in determining the capital structure are assets, liquidity and solvency [1]. Several previous studies that have examined the role of assets on capital structure state that the assets showed a positive but not significant impact on the capital structure [2], [3]. But there are also some who state that the assets showed a significant role on capital structure [4], [5]. In addition to asset structure, liquidity is also a key indicator in determining the capital structure of a company. Several previous studies have found that liquidity has a significant role in capital structure [6], [7]. Besides that, several studies have found that liquidity does not play a role in capital structure [8], [9]. Various findings from previous studies that are still inconsistent indicate that there is still a need for follow-up research on the topic of capital structure. Solvency is also one of the key indicators for capital structure. Several previous studies have found that solvency has a significant role in capital structure [10]. On the other hand, several studies have found that solvency does not play a role in capital structure [11]. Research on the role of solvency on capital structure is still rarely done. Therefore, this topic still needs to be explored more intensively. The existence of a virus called the Covid 19 virus has an impact on global health. In addition, it also has an impact on several other sectors such as the education, economic, social, tourism, hospitality, etc. This condition is due to the fear that the COVID-19 virus will spread through the air, shaking hands, and through people who have coughs and colds. In the end, everyone has a fear of interacting with other people. This fear ultimately makes a person more nervous, so that his mind will be disturbed, which causes more pain. Cases of death due to the covid virus and accompanying congenital diseases cause a fairly high mortality rate. In the end, many people choose to avoid interacting with others. The sectors most affected by the diseases covid 19 are the tourism and hospitality sectors. The tourism sector in Indonesia is a rapidly growing sector. Many tourist attractions in Indonesia are frequented by many foreign tourists. The Covid-19 pandemic has caused the tourism industry in Indonesia to decline sharply. This is because many countries implement emergency conditions and restrictions related to human activities. Based on so many differences in the results of previous studies and the phenomena that occurred during COVID-19, this study will further explore “Key Indicators for Determining Capital Structure for Public Companies in Indonesia”. The discussion will focus more on three main indicators, namely, asset structure, liquidity and solvency. 2 Literature Review The emergence of the trade off theory is due to the merger of the Modigliani-Miller theory. Where in this theory there are agency costs and bankruptcy costs. This phenomenon proves that there is a trade off that comes from saving taxes from debt and bankruptcy costs [12]. This situation shows that if the proportion of debt is ICBAE 2022, August 10-11, Purwokerto, Indonesia Copyright © 2022 EAI DOI 10.4108/eai.10-8-2022.2320890