IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2024i2p79-84.html

Relationship between Wastewater Quality and Corporate Stock Price

Author

Listed:
  • Collins C. Ngwakwe

    (University of Limpopo, Polokwane, South Africa)

Abstract

Almost all industrial players handle wastewater treatment in one way or another by themselves, no matter the industry or company's size. Some companies have wastewater treatment plants, and others are considering investments for construction or modernisation. Occasionally, industrial wastewater is discharged to a municipal wastewater treatment plant; however, it must sometimes be pre-treated. Corporate wastewater quality is imperative for environmental responsibility, corporate legitimacy and financial performance. This paper examines the relationship between the reduction of hydrocarbon content of offshore and onshore wastewater and the stock price presented in TotalEnergies. The data on hydrocarbon content reduction in offshore and onshore wastewater discharge was collected from the TotalEnergies 2022 Sustainability and Climate Progress Report. In addition, the data on TotalEnergy's stock price was collected from the FusionMedia online stock price index. Data was analysed quantitatively through the application of a graphical approach. Findings from the graphical analysis of data depict two important dimensions of the stock value effect. Firstly, the results show a corresponding relationship between the reduction in the hydrocarbon content of wastewater and an increase in the stock price value of TotalEnergies. Secondly, the results show that the increase in stock price value continues even beyond the times of hydrocarbon reduction, which shows that investors compensate the company for its previously good performance in hydrocarbon reduction. This legitimacy-ingrained performance shows that hydrocarbon reduction protects the company's value even during uncertainties and/or hindrances in wastewater quality. Based on this finding, the paper develops an inductive hypothesis, opening a new research agenda. The findings are of practical significance for industrial hydrocarbon content reduction and the attraction of short- and long-term financial value to the industry.

Suggested Citation

  • Collins C. Ngwakwe, 2024. "Relationship between Wastewater Quality and Corporate Stock Price," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 79-84, June.
    • Handle: RePEc:iaf:journl:y:2024:i:2:p:79-84
    DOI: 10.33146/2307-9878-2024-2(104)-79-84
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/1066-zv-yazok-mizh-yakistyu-stichnih-vod-i-cinoyu-korporativnih-akciy.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/1066/
    Download Restriction: no
    File URL: https://libkey.io/10.33146/2307-9878-2024-2(104)-79-84?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Klaus Rennings & Christian Rammer, 2011. "The Impact of Regulation-Driven Environmental Innovation on Innovation Success and Firm Performance," Industry and Innovation, Taylor & Francis Journals, vol. 18(3), pages 255-283.
    2. Elisabeth Albertini, 2013. "Does Environmental Management Improve Financial Performance? A Meta-Analytical Review," Post-Print halshs-01887802, HAL.
    3. Riccardo Rodella & Maria Rosa De Giacomo, 2023. "How do financial markets reward companies tackling climate change concerns? A natural experiment based on the Brexit referendum," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 979-990, March.
    4. Gull, Ammar Ali & Atif, Muhammad & Ahsan, Tanveer & Derouiche, Imen, 2022. "Does waste management affect firm performance? International evidence," Economic Modelling, Elsevier, vol. 114(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ana Labella-Fernández & M. Mar Serrano-Arcos & Belén Payán-Sánchez, 2021. "Firm Growth as a Driver of Sustainable Product Innovation: Mediation and Moderation Analysis. Evidence from Manufacturing Firms," IJERPH, MDPI, vol. 18(5), pages 1-22, March.
    2. Sylvain Marsat & Guillaume Pijourlet & Muhammad Ullah, 2021. "Is there a trade‐off between environmental performance and financial resilience? International evidence from the subprime crisis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 4061-4084, September.
    3. Vashisht, Rupali & Calvo-Pardo, Hector & Olmo, Jose, 2025. "A causal analysis of environmental and financial performance: Differences between brown and green firms," Economic Modelling, Elsevier, vol. 144(C).
    4. Jacques Pelkmans & Andrea Renda, "undated". "Does EU Regulation Hinder or Stimulate Innovation?," IRMO Occasional Papers 5, Institute for Development and International Relations, Zagreb.
    5. Younes Ben Zaied & Béchir Ben Lahouel, 2021. "Does environmental CSR performance matter for corporate financial performance? Evidence from panel quantile regression," Economics Bulletin, AccessEcon, vol. 41(3), pages 938-951.
    6. Vitaliy Roud & Thomas Wolfgang Thurner, 2018. "The Influence of State‐Ownership on Eco‐Innovations in Russian Manufacturing Firms," Journal of Industrial Ecology, Yale University, vol. 22(5), pages 1213-1227, October.
    7. Stojčić, Nebojša, 2021. "Social and private outcomes of green innovation incentives in European advancing economies," Technovation, Elsevier, vol. 104(C).
    8. Birgit Aschhoff & Georg Licht & Paula Schliessler, 2013. "Who Drives Smart Growth? The Contribution of Small and Young Firms to Inventions in Sustainable Technologies. WWWforEurope Working Paper No. 47," WIFO Studies, WIFO, number 47072.
    9. Tan, Xiujie & Wang, Rui & Choi, Yongrok & Lee, Hyoungsuk, 2024. "Does Korea's carbon emissions trading scheme enhance efficiency for sustainable energy and utilities?," Utilities Policy, Elsevier, vol. 88(C).
    10. Beatriz Aibar-Guzmán & Sónia Monteiro & Fátima David & Francisco M. Somohano-Rodríguez, 2023. "The Waste Hierarchy at the Business Level: An International Outlook," Mathematics, MDPI, vol. 11(22), pages 1-22, November.
    11. Hazem Ali & Ting Chen & Yunhong Hao, 2021. "Sustainable Manufacturing Practices, Competitive Capabilities, and Sustainable Performance: Moderating Role of Environmental Regulations," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    12. Cortez, Maria Céu & Andrade, Nuno & Silva, Florinda, 2022. "The environmental and financial performance of green energy investments: European evidence," Ecological Economics, Elsevier, vol. 197(C).
    13. Yousaf, Umair Bin & Ullah, Irfan & Jiang, Junchen & Wang, Man, 2022. "The role of board capital in driving green innovation: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    14. Orsatti, Gianluca & Pezzoni, Michele & Quatraro, Francesco, 2017. "Where Do Green Technologies Come From? Inventor Teams’ Recombinant Capabilities and the Creation of New Knowledge," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201711, University of Turin.
    15. Ruiqian Li & Guanghua Xu & Ramakrishnan Ramanathan, 2022. "The impact of environmental investments on green innovation: An integration of factors that increase or decrease uncertainty," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3388-3405, November.
    16. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2015. "Eco-innovation and firm growth: Do green gazelles run faster? Microeconometric evidence from a sample of European firms," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201516, University of Turin.
    17. Justin Doran & Geraldine Ryan, 2012. "Regulation and firm perception, eco‐innovation and firm performance," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 15(4), pages 421-441, September.
    18. Nizam, Esma & Ng, Adam & Dewandaru, Ginanjar & Nagayev, Ruslan & Nkoba, Malik Abdulrahman, 2019. "The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector," Journal of Multinational Financial Management, Elsevier, vol. 49(C), pages 35-53.
    19. Shreekant Gupta & Bishwanath Goldar & Shubham Dang, 2019. "Environmental Performance And Capital Markets--Evidence From India," Working papers 303, Centre for Development Economics, Delhi School of Economics.
    20. Misani, Nicola & Pogutz, Stefano, 2015. "Unraveling the effects of environmental outcomes and processes on financial performance: A non-linear approach," Ecological Economics, Elsevier, vol. 109(C), pages 150-160.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2024:i:2:p:79-84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhii Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.