The Experts below are selected from a list of 324 Experts worldwide ranked by ideXlab platform
Giulia Romano - One of the best experts on this subject based on the ideXlab platform.
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environmental sustainability and service quality beyond economic and financial indicators a performance evaluation of italian Water Utilities
Socio-economic Planning Sciences, 2020Co-Authors: Giovanna Dinverno, Laura Carosi, Giulia RomanoAbstract:Abstract As Water Utilities operate as natural monopolists and they provide essential services for human life, their activities are regulated by public authorities. The sustainable use of Water resources and a specific attention on social needs should be essential goals for this kind of firms, so that the evaluation of their business should go beyond their profitability and their financial solvency. Keeping pace with the new Circular Economy paradigm and the evolution of the Water regulatory framework, in this paper we suggest a global composite indicator apt to evaluate in a novel way the Water Utilities performance, encompassing financial and economic indexes together with environmental sustainability and service quality measures. To show its empirical implementation we evaluate the performance of Italian Water Utilities. The operating context is also under scrutiny focusing on specific Water utility features such as size, geographical location, degree of diversification and ownership. In this light, operating in the Centre and being large are considered favourable background conditions, while the South and the medium size display a significant unfavourable influence on the Water utility performance. Multi-Utilities are more advantaged with respect to the mono-Utilities and no significant distinction can be made among the different ownership models.
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Paying Returns to Shareholders of Water Utilities: Evidence from Italy
MDPI AG, 2019Co-Authors: Giulia Romano, Andrea GuerriniAbstract:The debate about the role of corporations with regard to Water also involves the influence that paying returns to shareholders could have on the investment policy of Utilities, influencing the development of new infrastructure or the renewal of existing ones. This study investigated the dividend policy of Water Utilities by analyzing the data of 128 Italian firms during 2009–2014. Data show that the majority of Utilities do not distribute any return to shareholders. On average, large Utilities pay more frequent returns than medium-sized and small ones. Moreover, Water Utilities that are part of a group, multi-Utilities, and those located in the center of Italy pay more frequent returns than do others. Southern firms usually do not pay returns. As expected, privately owned Water Utilities pay dividends more frequently and have higher returns to equity. In all the observed years, at least one-third of such Utilities paid returns. Empirical results provide Water regulators, Water utility managers, and stakeholders with information that can impact future regulatory and managerial decisions related to management and strategic model choices in the Water industry and how these decisions affect investments to improve Water quality, Water quantity, and/or Water services
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Exploring the link between corporate governance and efficiency of italian Water Utilities
Agua y Territorio, 2015Co-Authors: Giulia Romano, Andrea Guerrini, Chiara LeardiniAbstract:The present paper analyzes the linkage between the corporate governance of Italian Water Utilities (ownership, board size and board composition) and their efficiency measured through data envelopment analysis (DEA). Using a general panel data regression model, we found that board size negatively affects the efficiency of Water Utilities. Moreover, the presence of directors with political affiliations or who are/were members of local or national government negatively affects efficiency, and the presence of directors with a degree on the board has a slight negative effect on productivity. Conversely, other variables (ownership, gender diversity and average age of board members) were found not to affect the efficiency of Italian Water Utilities. The existence of economies of scale was also confirmed.
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does Water Utilities ownership matter in Water pricing policy an analysis of endogenous and environmental determinants of Water tariffs in italy
Water Policy, 2015Co-Authors: Giulia Romano, Lucio Masserini, Andrea GuerriniAbstract:Owing to the growing importance of efficient Water management, it has become crucial to understand Water Utilities' characteristics and the environmental factors affecting Water pricing, so as to provide guidance to policy-makers. The analysis of factors influencing Water tariffs is a challenging task in a context in which companies providing the service are characterized by different ownership features. Moreover, environmental factors and companies' characteristics may simultaneously influence both the decision to privatize the service and the Water tariff level. Using a treatment effects model, where privatization is considered as an endogenous binary treatment variable, this paper analyzes whether and how certain relevant variables affect the tariffs levied by Water Utilities in Italy. The results show that higher tariffs are set in order to cover a greater amount of investments; furthermore, abundant Water availability, measured by the average annual rainfall, significantly reduces prices. The data surprisingly show that tariffs are higher where the income level is lower. Significantly, after accounting for the endogeneity due to the fact that Water firms are not randomly distributed between totally publicly or not totally publicly owned, our results seem to suggest that ownership does not influence the tariffs levied by Water Utilities.
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the effects of ownership board size and board composition on the performance of italian Water Utilities
Utilities Policy, 2014Co-Authors: Giulia Romano, Andrea GuerriniAbstract:Abstract This article analyses the effects of ownership, board size and composition on the performance of 72 Italian Water Utilities. Information about the Utilities' 335 directors was collected. Our main findings indicate that private or mixed-ownership Utilities show higher profitability than entirely publicly-owned firms, even if the latter are less debt-dependent. Furthermore, our results show that the boards of Italian Water Utilities are dominated by politically connected directors, who boost access to debt and negatively affect the firms' capital structures. This study also shows that board composition, in terms of the age and educational background of members, influences economic performance, since graduate and senior directors exert a negative influence on profitability.
Andrea Guerrini - One of the best experts on this subject based on the ideXlab platform.
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Paying Returns to Shareholders of Water Utilities: Evidence from Italy
MDPI AG, 2019Co-Authors: Giulia Romano, Andrea GuerriniAbstract:The debate about the role of corporations with regard to Water also involves the influence that paying returns to shareholders could have on the investment policy of Utilities, influencing the development of new infrastructure or the renewal of existing ones. This study investigated the dividend policy of Water Utilities by analyzing the data of 128 Italian firms during 2009–2014. Data show that the majority of Utilities do not distribute any return to shareholders. On average, large Utilities pay more frequent returns than medium-sized and small ones. Moreover, Water Utilities that are part of a group, multi-Utilities, and those located in the center of Italy pay more frequent returns than do others. Southern firms usually do not pay returns. As expected, privately owned Water Utilities pay dividends more frequently and have higher returns to equity. In all the observed years, at least one-third of such Utilities paid returns. Empirical results provide Water regulators, Water utility managers, and stakeholders with information that can impact future regulatory and managerial decisions related to management and strategic model choices in the Water industry and how these decisions affect investments to improve Water quality, Water quantity, and/or Water services
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Exploring the link between corporate governance and efficiency of italian Water Utilities
Agua y Territorio, 2015Co-Authors: Giulia Romano, Andrea Guerrini, Chiara LeardiniAbstract:The present paper analyzes the linkage between the corporate governance of Italian Water Utilities (ownership, board size and board composition) and their efficiency measured through data envelopment analysis (DEA). Using a general panel data regression model, we found that board size negatively affects the efficiency of Water Utilities. Moreover, the presence of directors with political affiliations or who are/were members of local or national government negatively affects efficiency, and the presence of directors with a degree on the board has a slight negative effect on productivity. Conversely, other variables (ownership, gender diversity and average age of board members) were found not to affect the efficiency of Italian Water Utilities. The existence of economies of scale was also confirmed.
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does Water Utilities ownership matter in Water pricing policy an analysis of endogenous and environmental determinants of Water tariffs in italy
Water Policy, 2015Co-Authors: Giulia Romano, Lucio Masserini, Andrea GuerriniAbstract:Owing to the growing importance of efficient Water management, it has become crucial to understand Water Utilities' characteristics and the environmental factors affecting Water pricing, so as to provide guidance to policy-makers. The analysis of factors influencing Water tariffs is a challenging task in a context in which companies providing the service are characterized by different ownership features. Moreover, environmental factors and companies' characteristics may simultaneously influence both the decision to privatize the service and the Water tariff level. Using a treatment effects model, where privatization is considered as an endogenous binary treatment variable, this paper analyzes whether and how certain relevant variables affect the tariffs levied by Water Utilities in Italy. The results show that higher tariffs are set in order to cover a greater amount of investments; furthermore, abundant Water availability, measured by the average annual rainfall, significantly reduces prices. The data surprisingly show that tariffs are higher where the income level is lower. Significantly, after accounting for the endogeneity due to the fact that Water firms are not randomly distributed between totally publicly or not totally publicly owned, our results seem to suggest that ownership does not influence the tariffs levied by Water Utilities.
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the effects of ownership board size and board composition on the performance of italian Water Utilities
Utilities Policy, 2014Co-Authors: Giulia Romano, Andrea GuerriniAbstract:Abstract This article analyses the effects of ownership, board size and composition on the performance of 72 Italian Water Utilities. Information about the Utilities' 335 directors was collected. Our main findings indicate that private or mixed-ownership Utilities show higher profitability than entirely publicly-owned firms, even if the latter are less debt-dependent. Furthermore, our results show that the boards of Italian Water Utilities are dominated by politically connected directors, who boost access to debt and negatively affect the firms' capital structures. This study also shows that board composition, in terms of the age and educational background of members, influences economic performance, since graduate and senior directors exert a negative influence on profitability.
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Ownership, Investment Policies and Funding Choices of Italian Water Utilities: An Empirical Analysis
Water Resources Management, 2013Co-Authors: Giulia Romano, Andrea Guerrini, Silvia VernizziAbstract:Nowadays, the efficient management of Water has become the focus of vast debate, both in the academic literature and in the practical and regulatory field. Due to the growing importance and scarcity of Water resources, it has become crucial to better understand how to improve the organizational efficiency of Water Utilities. By adopting an accounting perspective and using statistical methods, this paper analyzes whether and to what extent investment and financial strategies differ among clusters of Water Utilities with different ownership structures. The paper focuses on the Italian Water industry, a context considered particularly appropriate due to the coexistence of Utilities with different ownership structures. The main results of the paper show that ownership affects the level of investment as well as the financial structure and costs of Water Utilities. The evidence provided by this study should encourage national governments and regulatory authorities to select Water Utilities with the greatest investment potential measured in terms of financial efficiency and effectiveness.
Diane Dupont - One of the best experts on this subject based on the ideXlab platform.
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The performance of municipal Water Utilities: evidence on the role of ownership.
Journal of toxicology and environmental health. Part A, 2004Co-Authors: Steven Renzetti, Diane DupontAbstract:There is growing concern about the operations of the municipal agencies responsible for supplying potable Water and treating sewage, spurred by (1) difficulties of maintaining aging capital stocks in times of tightening fiscal constraints, (2) the Water pollution generated by these agencies, (3) problems associated with service quality and reliability, and (4) the recognition of the role played by Utilities in allocating scarce Water resources. These concerns have lead to a heightened scrutiny of these agencies with increased interest in reforming their operations. In particular, this has focused on an examination of whether the ownership of Water Utilities is a factor explaining their behavior and whether changing their ownership will lead to improvements in their operations. The purpose of this paper was to critically assess what is known regarding the relationship between the ownership and performance of municipal Water Utilities. There are a number of theoretical arguments that support the prediction that privately owned Water Utilities will out-perform comparable publicly funded Utilities. These arguments draw on property-rights and public choice theories and principle agent models in order to emphasize the difficulty that governments have in monitoring and providing proper incentives for utility managers. Empirical evidence was obtained from the United States, the United Kingdom, and France based on a variety of performance indicators. These data revealed that there was no compelling evidence of private Utilities outperforming public Utilities or that privatizing Water Utilities leads to improvements in performance.
Francisco González-gómez - One of the best experts on this subject based on the ideXlab platform.
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The role of environmental factors in Water Utilities' technical efficiency. Empirical evidence from Spanish companies.
Applied Economics, 2009Co-Authors: Andrés J. Picazo-tadeo, Francisco Javier Sáez Fernández, Francisco González-gómezAbstract:This paper computes input-specific scores of technical efficiency for a sample of Water Utilities located in the southern Spanish region of Andalusia. In addition, differences in efficiency between different operating environments are investigated. Concerning the debate about ownership and efficiency, we find that privately owned companies outperform public Utilities in their management of labour. Furthermore, technical efficiency is found to be greater among firms located in highly populated areas and for Utilities providing Water services to tourist municipalities. Finally, no empirical evidence supporting the greater technical efficiency of consortia of Water Utilities, a managerial strategy strongly encouraged by regional politicians, is found.
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Does service quality matter in measuring the performance of Water Utilities
Utilities Policy, 2008Co-Authors: Andrés J. Picazo-tadeo, Francisco J. Sáez-fernández, Francisco González-gómezAbstract:Abstract Quality is a dimension of Water services that has been repeatedly omitted in the study of performance of Water Utilities. In this paper, Data Envelopment Analysis techniques are used to compute both conventional quantity-based and quality-adjusted scores of technical efficiency for a sample of Spanish Water Utilities. The key assumptions are that a lack of quality (bad quality) can be regarded as a bad output and the existence of a trade-off between quantity and quality. Our main results indicate that quality matters in measuring technical efficiency, the difference between conventional and quality-adjusted evaluations representing the opportunity cost of maintaining quality. Averages and distribution functions significantly differ between both assessments of performance, although Water Utilities do not seem to rank differently.
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Does Service Quality Matter In Measuring Performance Of Water Utilities
2007Co-Authors: Andrés J. Picazo-tadeo, Francisco J. Sáez-fernández, Francisco González-gómezAbstract:Quality is a dimension of Water services that has been repeatedly omitted in the study of performance of Water Utilities. In this paper, we make use of Data Envelopment Analysis techniques (DEA) to compute both conventional quantity-based and quality-adjusted indicators of technical efficiency for a sample of Spanish Water Utilities. The key assumptions are that a lack of quality (bad quality) can be regarded as a bad output, and the existence of a trade-off between quantity and quality. Our main results indicate that quality matters in measuring technical performance, the difference between conventional and quality-adjusted evaluations representing the opportunity cost of maintaining quality. Averages and distribution functions significantly differ between both assessments of performance, although Water Utilities do not seem to rank differently.
Kok Fong See - One of the best experts on this subject based on the ideXlab platform.
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exploring and analysing sources of technical efficiency in Water supply services some evidence from southeast asian public Water Utilities
Water Resources and Economics, 2015Co-Authors: Kok Fong SeeAbstract:Abstract This is the first efficiency analysis of Southeast Asian Water Utilities that uses a double bootstrap data envelopment analysis model. A sample of 40 publicly owned Water Utilities was selected in the study. Six explanatory factors (i.e., non-revenue Water, population density, gross domestic production per capita, average maximum temperature, dummies for state-owned enterprises and groundWater extraction) have been used to explain the differences in the technical inefficiency effects across public Water Utilities in Southeast Asia. We find that Southeast Asian Water Utilities, on average, obtained a technical efficiency of 0.74. The result reveals that the population density is linked with the technical inefficiency in the reverse direction. Furthermore, we also observe that state-owned Water enterprises perform slightly lower than those from other forms of publicly-owned Water utility. Policy implications are derived.
