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Drivers Of Utility Viability And Sustainability: Do Nonfinancial Performance Measures Make A Difference?

Author

Listed:
  • Daniel Acheampong
  • Chrissann Ruehle
  • Tanya S. Benford

Abstract

The study reviews the growth trend for investor-owned utilities (water and wastewater), adopts the National Regulatory Research Institute's financial viability ratios modified by Acheampong et al., and identifies four categories of nonfinancial performance instruments that drive utility abandonments and transfers. The study observed a downward trend in investor-owned utilities from the sample state (Florida). Prior research has concentrated on financial performance measures (Financial ratios) to determine the sustainability and viability of investor-owned utilities. The study concluded that nonfinancial performance measures are significant in determining investor-owned utility abandonments and transfers comparatively to financial performance measures; the drivers for utility transfers are different from utility abandonments, and each utility class should be treated with its own merits.

Suggested Citation

  • Daniel Acheampong & Chrissann Ruehle & Tanya S. Benford, 2023. "Drivers Of Utility Viability And Sustainability: Do Nonfinancial Performance Measures Make A Difference?," Accounting & Taxation, The Institute for Business and Finance Research, vol. 15(1), pages 1-25.
    • Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p:1-25
    as

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    References listed on IDEAS

    as
    1. Balcaen, Sofie & Ooghe, Hubert, 2006. "35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems," The British Accounting Review, Elsevier, vol. 38(1), pages 63-93.
    2. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure - Reply," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 123-127.
    3. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 71-111.
    4. Neter, J, 1966. "Financial Ratios As Predictors Of Failure - Discussion," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 112-118.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Abandonments; Financial Performance Measures; Nonfinancial Performance Measures; Sustainability; Viability; Investor-Owned; Authorized Territory;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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