Yllka Ahmeti – Faculty of Economics, University of Tetovo, North Macedonia
Ardi Ahmeti – Faculty of Economics, University of Prishtina
Albina Kalimashi – Faculty of Economics, University of Prishtina

DOI: https://doi.org/10.31410/EMAN.2021.103


5th International Scientific Conference – EMAN 2021 – Economics and Management: How to Cope With Disrupted Times, Online/Virtual, March 18, 2021, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-43-1, ISSN 2683-4510

Abstract:

Liquidity management and its impact on the profitability of commercial banks are two issues
of particular importance in the further development of the business and at the same time two sources of
concern for financial managers. For this reason, this study aims to determine the impact of changes in
liquidity levels on the profitability of commercial banks in Kosovo. The study is based on secondary data
for nine commercial banks in Kosovo over 9 years, respectively for the period from 2011 to 2019, taken
from the audited annual statements of these financial institutions. The study measures the relationship
between liquidity management and profitability and its impact on profitability. In order to process the
data, regression analysis and correlation were used, while the findings determine whether there is a significant
relationship between liquidity management and profitability in commercial banks in Kosovo. The
current ratio, the quick ratio, the cash ratio and the capital adequacy ratio have been taken as liquidity
indicators, while return on assets and return on equity are considered as profitability indicators.

Keywords:

Liquidity, Liquidity management, Profitability, Impact of liquidity management on profitability.

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