Econometric Model for the Financial Performance of Romanian Companies Operating in the Water Supply and Sewerage Field

• Published in: Water (Basel) Vol. 14; no. 12; p. 1929
• Main Authors: Topor, Dan Ioan, Anghelache, Constantin, Ionescu, Constantin Aurelian, Căpușneanu, Sorinel, Fülöp, Melinda Timea, Cioca, Ionela Cornelia, Rakoș, Ileana-Sorina, Coman, Mihaela Denisa, Breaz, Teodora Odett, Bakó (Fülöp), Kinga-Erzsébet
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 01.06.2022
• Subjects: Cost control; Econometric models; Econometrics; economic efficiency; Efficiency; financial performance; Financial statements; Independent variables; Infrastructure; Labor; Labor productivity; Operating costs; Operators; Performance evaluation; Privatization; Productivity; Profitability; Public sector; Public utilities; public/private partnerships; Purification; Romania; Sanitation; Sewage; Sewer systems; Sewerage; Statistical analysis; Sustainable development; United Kingdom; water and sewage; Water supply; United Kingdom; Romania
• ISSN: 2073-4441; 2073-4441
• DOI: 10.3390/w14121929

This research aims to measure the financial performance of companies in the water and sewerage sector by creating a sustainable econometric model for making long-term strategic decisions for managers and stakeholders. The research methodology consisted of the use and statistical processing of the data included in the summary financial statements of 40 regional operators in the field from 2014 to 2020. Multiple linear regression has been created with which stakeholders and water and sewerage specialists can shape changes in value-added variation, the average cost per employee, labor productivity, and energy expenditure on the net profit of water operators and sewerage. The results indicated that the independent variables used, such as value-added, labor productivity, or intangible assets have a direct influence on increasing the net profit of water and sewerage companies. Other independent variables such as the average cost per employee or the expenditure on electricity and water negatively influence the increase in the net profit of companies in the water and sewerage sector. The conclusions indicated that the average net profit is influenced by independent variables and the model created, and it can be successfully applied to other international companies in the field.