ENHANCING THE LIQUIDITY OF JOINT-STOCK COMPANIES: A COMPREHENSIVE FRAMEWORK FOR LIQUIDITY MANAGEMENT AND FINANCIAL STABILITY

Abstract

This article examines a comprehensive framework for enhancing the liquidity of joint-stock companies through the integration of liquidity management practices and financial stability mechanisms. Liquidity is considered a critical component of corporate financial management, as insufficient liquidity may increase the risk of payment difficulties, financial distress, and disruption of operating activities, while excessive liquidity may result in inefficient utilization of financial resources and lower investment returns. The study focuses on the relationship between liquidity management and financial stability, emphasizing the effective management of working capital, cash flows, accounts receivable, inventories, short-term liabilities, and financing sources. Particular attention is given to the institutional dimensions of liquidity management, including corporate governance, internal control, risk management, financial planning, and the monitoring of liquidity indicators. The analysis demonstrates that sustainable liquidity cannot be achieved solely through maintaining a high volume of current assets; rather, it requires an optimal balance between solvency, profitability, risk, and the efficient allocation of financial resources. Based on the identified relationships, the article develops practical approaches aimed at improving cash flow forecasting, optimizing working capital, reducing the cash conversion cycle, diversifying short-term financing sources, and strengthening liquidity risk management. The proposed framework can contribute to improving the financial resilience, payment capacity, and overall financial stability of joint-stock companies.