Water And Firm Performance Linkage - An Investigation Of Three Large Food Firms

Abstract

There is no hesitation in stating that water is directly linked to sustainability of firms. Food firms in particular interact with water environment in multiple ways -as input and output, through nutrient and thermal exchange, extreme water situations, peripheral processes, ecosystem and community equilibrium etc. Firms need to pay attention to optimal use, discharge, efficiency and technology for creating that acceptability and balance. Strategically for firms’ financial logic plays a crucial role in taking water actions and becoming water conscious. The objective of this study was to examine whether the financial data of large companies can be analyzed through the water costs lens. It uses water charges information and financial data of 3 large Food and Beverages firms from India for a period of 8 years using CMIE database. Further, quantitative approach is applied to figure out statistical importance of Water variable using stepwise regression and relationship using POLS. The research shows a significant link between financial performance and water in food and beverages firms. Essentially, the econometric analysis confirmed the positive impact of water on firm performance. This research adds clarity to the existing academic discussion on the relationship between financial performance of firms and water.