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Does product market competition affect corporate waste management? International evidence

Author

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  • Atawnah, Nader
  • Hossain, Md Zakir
  • Al Mamun, Md
  • Badarin, Louy

Abstract

We investigate the impact of product market competition (PMC) on corporate waste generation and Recycling. Analysing a global sample of 42 countries from 2002 to 2020, we find a positive (negative) association between the PMC and corporate waste generation (Recycling). Our channel analysis reveals that PMC diminishes both a company's profitability and cash flow, leading to lower waste management (Recycling). In further analysis, we demonstrate that the positive effect of PMC on waste generation is more prominent in financially constrained firms. Our study provides novel evidence of the consequential impact of competition on sustainability initiatives and presents important policy implications for regulators.

Suggested Citation

  • Atawnah, Nader & Hossain, Md Zakir & Al Mamun, Md & Badarin, Louy, 2024. "Does product market competition affect corporate waste management? International evidence," International Review of Economics & Finance, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:reveco:v:95:y:2024:i:c:s1059056024004751
    DOI: 10.1016/j.iref.2024.103483
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    More about this item

    Keywords

    Waste generation; Waste recycling; Market competition; Profitability; Free cash flow;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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