Tracking Waste Management Information Disclosure Behavior Connected to Financial Performance through Moderating Variables

Int J Environ Res Public Health. 2022 Oct 11;19(20):13068. doi: 10.3390/ijerph192013068.

Abstract

The current challenges of a circular economy exert a high pressure on manufacturing companies that generate waste to track and implement policies to reduce them and eliminate the toxicity of residues. Hence, the purpose of this study is to analyze the waste management information disclosure linked to the financial performance of companies and test the moderating effect of internal and external variables. The average waste management information disclosure index shows a poor disclosure score for the analyzed period, however, the waste disclosure index after reaching a minimum threshold in 2019 recorded an encouraging increase at the end of 2021. Applying the fixed effects model, ordinary least squares, and two-stage least squares method, the results revealed a positive and statistically significant relationship between management information disclosure and the return on assets, while for the current ratio the connection has been invalidated. A statistically significant influence of the environmental-sensitive industry status, board size, and productivity on the moderating variables was found for the return on assets, while for current ratio, there was none. As for the alternative metrics of financial performance, the results showed that a higher degree of management information disclosure will increase the return on equity and earnings per share, while in the case of liquidity, the results are not conclusive.

Keywords: board size; environmental-sensitive status; financial performance; manufacturing industry; productivity; waste information disclosure.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Commerce
  • Disclosure*
  • Industry
  • Waste Management*

Grants and funding

The research has been funded by the University of Oradea, within the Grants Competition “Scientific Research of Excellence Related to Priority Areas with Capitalization through Technology Transfer: INO-TRANSFER-UO”, Project No. 325/21.12.2021.