<![CDATA[This study aims to analyze the effect of leverage on the financial performance of firms in the transportation and logistics industry listed on the Indonesia Stock Exchange throughout the COVID-19 crisis and the economic recovery period. Based on panel regression results indicate that during the crisis period, leverage has a significant positive effect on Return on Assets (ROA) but a non-significant negative effect on Return on Equity (ROE). Conversely, during the recovery period, leverage has a significant negative effect on both ROA and ROE. The moderating roles of firm size and tangibility differ significantly across economic phases. During the crisis period, firm size strengthened the effect of leverage on ROA (β = -0.0736; p = 0.000), contrary to our hypothesis. Conversely, during the recovery period, firm size weakened the negative effect of leverage on ROA (β = 0.0877; p = 0.0227), confirming its buffering role. These contrasting findings suggest that the moderating function of firm size is phase-dependent: it exacerbates leverage risk during crises but serves as a protective factor during recovery. This study is distinctive in its comparison of two distinct economic phases and testing of moderation effects, which has not been extensively conducted in Indonesia's transportation and logistics sector. These findings are expected to provide insights for managers in adjusting their financing strategies based on the economic phase.]]>
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