The impact of COVID-19 on liquidity management in small and medium-sized trade businesses

Purpose: The aim of this paper is to examine empirically the relationship between liquidity management and profitability Croatian small medium enterprises in trade provide empirical evidence effects on level during COVID-19 crisis. Methodology: analysis began with descriptive statistics, where authors observed following variables: ROA, current liquidity, accelerated immediate employment. collected data analyzed statistics compared Wilcoxon signed-rank test. made six regression models performed diagnostics for all models. problem heteroscedasticity examined Breusch-Pagan test, normality relation errors Jarque-Bera while multi-collinearity variance inflation factor (VIF). Results: All confirmed a statistically significant positive impact both years, which means that increase will result an companies. Control variables company size category did not prove significant. Conclusion: Scientific contribution development model trade. also applicable similar transition post-transition economies, especially those region have economic as it help policy makers corporate managers understand importance levels.