EMPIRICAL STUDY ON SHORT-TERM FINANCIAL EQUILIBRIUM OF SMALL AND MEDIUM-SIZED ENTERPRISES IN ROMANIA

The study investigates the main determinants of short-term financial equilibrium for 121 small and medium-sized enterprises from the Romanian market during the period 2013‒2022, operating in industries such as the manufacturing of textile, furniture, medicine and IT. By means of panel generalized method of moments, we showed that liquidity was mailyinfluenced by return on assets ratio, return on sales ratio and general profitability ratio. At the same time, our study addresses the importance of strengthening short-term financial equilibrium for the proper operation of small and medium-sized enterprises across industries.