Investigating the interrelationship of corporate water reporting with financial performance and firm value using the system of simultaneous equations

Document Type : Research Paper

Authors

1 Faculty of Economics and Administrative Sciences, University of Mazandaran , Babolsar, Iran

2 ASSOCIATE PROFESSOR, university of Mazandaran

Abstract

Today, the importance of water resources in the industry sector is evident to everyone, and companies are increasingly taking steps towards the optimal management of water resources and the disclosure of water-related information in the form of reports that have informational content and will have many consequences, Therefore, the purpose of this research is to investigate the interrelationship of corporate water reporting on financial performance and firm value in Tehran Stock Exchange member companies using simultaneous equations. This research is descriptive in terms of practical purpose and information collection method. The studied population is the member companies of the Tehran Stock Exchange, 102 companies were selected in the 10-year period from 2012-2021 by elimination method. The research findings showed that there is a positive and reciprocal relationship between corporate water reporting and asset return, but there is no reciprocal relationship between corporate water reporting and equity return. Also the relationship between corporate water reporting and firm value is one-sided and only corporate water reporting has a negative effect on firm value. These findings can be useful for managers and investors to better understand the consequences of water reporting in the company and help managers to have a more appropriate plan for the management of corporate water resources and also help investors in choosing the optimal portfolio.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 16, Issue 1
May 2024
Pages 81-110

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History

  • Receive Date: 31 January 2024
  • Revise Date: 18 May 2024
  • Accept Date: 18 May 2024

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