Profitability as a Function of the Cash Gap of Medium-Sized and Large Enterprises in Croatia’s Hotel Industry

The research problem is cash gap management and its impact on the profitability of medium and large enterprises in Croatia's hotel industry.The purpose of the paper is to investigate and determine profitability as a function of the mentioned enterprises' cash gap management.The hypothesis that profitability is a concave second-degree polynomial function of the cash gap of the enterprises in question is tested in the paper.Besides descriptive statistics, the dynamic panel data regression method is used in the analysis for the time horizon from 2017 to 2021.The research results show that enterprise profitability is a concave second-degree polynomial function of the cash gap.