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Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

Author

Listed:
  • Liliana Nicoleta Simionescu

    (Department of Finance, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Ștefan Cristian Gherghina

    (Department of Finance, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Ziad Sheikha

    (Department of Finance, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Hiba Tawil

    (Department of Finance, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

Abstract
This paper aimed to investigate the impact of water, waste, and energy consumption on firm performance for a sample of enterprises that belong to the S&P 500 Information Technology sector over the period of 2009–2020. The quantitative framework covered both accounting (e.g., return on assets—ROA; return on common equity—ROE; return on capital—ROC; return on invested capital—ROIC) and market-based measures of performance (e.g., price-to-book value—PB), alongside firm and corporate governance specific variables. By estimating multivariate panel data regression models, the empirical results provided support for a negative impact of total water use on PB but a positive effect on ROA. With reference to the total waste, the econometric outcomes revealed a negative influence on the entire selected performance measures, whereas total energy consumption did not reveal any statistically significant influence.

Suggested Citation

  • Liliana Nicoleta Simionescu & Ștefan Cristian Gherghina & Ziad Sheikha & Hiba Tawil, 2020. "Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector," IJERPH, MDPI, vol. 17(14), pages 1-31, July.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:14:p:5206-:d:386600
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    Keywords

    water; waste; energy; panel data;
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