Obey Dzomonda
The purpose of this study was to evaluate the effect of the waste reduction strategy on financial performance of firms listed on the Johannesburg Stock Exchange. The study was quantitative in nature and it used secondary data. The secondary data was collected from the firms’ websites from 2011-2018 using a sample of 32 firms. This resulted in 256 observations. The independent variable was waste reduction, and the dependent variable was financial performance as measured by the Tobin’s Q. Using the feasible generalized least squares, the findings showed that waste reduction strategies positively predict the future value of a firm as measured by the Tobin’s Q. The implication of this is that the concerned firms were able to send a strong signal to the external environment regarding their waste reduction commitments. The findings of the current study are of value as they add value to the body of knowledge through new empirical findings. Additionally, the findings are also crucial in influencing internal waste management policies of listed firms where the managers can align their internal policies to national waste management targets. The findings can also be useful to the academia where other scholars can use this study as a foundation for future studies. Due to environmental concerns, listed firms are recommended to be innovative in their approach to waste management, yet realizing the financial goals of the firm.