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

Liliana Nicoleta SimionescuŞtefan Cristian GherghinaZiad SheikhaHiba Tawil
Published in: International journal of environmental research and public health (2020)
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.
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