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1.INTRODUCTIONThe primary objective of financial managers is commonly defined through their role in maximizing the wealth of shareholders in the long term. The complexity of this objective determines the conflicting relationship of the financial manager with all other functional centres in the company, even the owners. Within the framework of the financial crisis from 2007 onwards, the role of the financial professionals has become more complex. Once the moral hazard and ethics of financial industry boosted the credit bubble, sharp curtail led to economic downturns. On the other hand, financial management appeared to solve internal imbalances arising from bad financial decisions and unrealistic sales objectives on a macroeconomic level. Financial management was relying more on flexibility instead on controllable decision-making process. The changes reflect the growing impact of globalization process in the World and the leading role of technology. Thus, faster pace of business required integrated financial management through redistribution of responsibilities. In times of crisis, financial management gains ground because it affects the stability of the company's liquidity and solvency, and ultimately the existence and preservation of owners' capital. There is a clear commitment of financial managers with wider range of issues and this increases the legal burden of regulations, control and bureaucratic costs for the company.Crisis management places high importance on liquidity due to the lack of access to capital or higher cost of financing. In times of economic growth and stability, the excessive access to low cost capital sources facilitates the matching of cash inflows and outflows. Liquidity requires withdrawal of profitable funds for the need of liquidity balance to ensure stability. On the other hand, the liquidity might be easily secured by higher rates of profitability and substantial increase in invested working capital. Liquidity has always been a specific priority area for financial managers. The difficulty of managing liquidity is strengthened by the need to compensate all detracted sources from the operating cycle and the likely reduction of turnover and profitability. Liquidity-related risks can often lead to deterioration of the financial situation and even bankruptcy. Under the circumstances of the recent crisis after 2007, with falling sales and clients' failure, the financial management is entrusted with minimizing the impact of higher liquidity requirements on profitability potential of the business. The main objective of this study is to specify appropriate measures in terms of the liquidity-profitability trade-off to assess the changed financial management scope of impact under crisis environment. In view of that, the following three hypotheses will be verified and considered:H1: The relationship between liquidity and profitability for the selected Bulgarian companies during the recent financial and economy crisis is negative in the long run.H2: The liquidity influences profitability but not vice versa.H3: In terms of the recent financial and economic crisis, the financial managers in Bulgaria did not trade off liquidity for profitability.2.LITERATURE OVERVIEWPaul Krugman (2010) and Argandona (2012) qualified the recent financial and economic crisis as a combination of "moralism and complacency" and "ethical issues", leading to a failure in the patterns of leadership and management and collapse of the existing economic and social model. Salhman (2009) qualified the crisis in the following way: "The macroeconomic problems were the result of bad microeconomic decisions". Pereira (2010) and Azkunaga et al (2013) analysed the process of "financialization" and creating massive artificial financial wealth through deregulation of existing financial operations and reducing control in order to maximize and expand the potential risks for investors. The transformation of financial management into a leading concept for economic and corporate governance is a trend that undoubtedly affected the potential for economic growth and development of companies. …

The liquidity-profitability trade-off in Bulgaria in terms of the changed financial management functions during crisis