Meta-study on the relationship between profitability and liquidity of enterprises in macroeconomic and institutional environment

Abstract The main aim of the paper is to determine relationship between profitability and financial liquidity a company using meta-analysis. This method based on synthesis many previous studies with application econometric tools. results study show that, taking into account 16 economies, it not possible identify common effect describing enterprises their measured by current ratio. individual empirical that underlie meta-analysis are diverse. means there moderators strength direction this dependence associated macroeconomic institutional conditions. We attempted separate them meta-regression. involves use regression model, where data derived from both external sources. diagnosed two statistically significant liquidity. These factors: (i) private sector crediting (ii) capital market development. Our contributes development existing knowledge summarizing binding identifying factors affecting relationship. can assist managers in making more efficient decisions related working management.