Does product market competition affect corporate waste management? International evidence

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.