<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>1665-5346</journal-id>
<journal-title><![CDATA[Revista mexicana de economía y finanzas]]></journal-title>
<abbrev-journal-title><![CDATA[Rev. mex. econ. finanz]]></abbrev-journal-title>
<issn>1665-5346</issn>
<publisher>
<publisher-name><![CDATA[Instituto Mexicano de Ejecutivos de Finanzas A.C.]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S1665-53462024000200008</article-id>
<article-id pub-id-type="doi">10.21919/remef.v19i2.954</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[The cost of doing nothing: Testing the benefits of water disposal risk reduction with water management Activism investing in Latin America]]></article-title>
<article-title xml:lang="es"><![CDATA[El costo de hacer nada: Una prueba de los beneficios de la reducción del riesgo de disposición de agua por medio de inversión activista en agua]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Torre-Torres]]></surname>
<given-names><![CDATA[Oscar V. De la]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
</contrib-group>
<aff id="Af1">
<institution><![CDATA[,Universidad Michoacana de San Nicolás de Hidalgo  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Mexico</country>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>06</month>
<year>2024</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>06</month>
<year>2024</year>
</pub-date>
<volume>19</volume>
<numero>2</numero>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_arttext&amp;pid=S1665-53462024000200008&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_abstract&amp;pid=S1665-53462024000200008&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_pdf&amp;pid=S1665-53462024000200008&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[Abstract Objective: This paper answers What would the performance of an investor be if she or he invested only in public companies with proper water management practices in Latin America (LATAM)? Methodology: The research uses the water-to-revenues (WTR) ratio to measure water management quality. It simulates the performance of an investor invested mainly in companies with the best WTR (from January 6th, 2005, to Abril 20, 2022). Results: Comparing the simulated portfolio&#8217;s performance against a broad market portfolio, the results suggest that both portfolios have similar performance in the short term. In the long term, the tests found that the WTR has a low systematic (market) risk (beta of 0.26), and its performance is more stable (mean-variance efficient) than the market portfolio. The tests also control the impact of some LATAM currencies&#8217; depreciation. Conclusions: The results could be useful for investors to engage in water management activism through investing, motivate companies to engage in better water management practices, and reduce the future risk that water disposal represents to the world in years to come.]]></p></abstract>
<abstract abstract-type="short" xml:lang="es"><p><![CDATA[Resumen Objetivo: Se responde la pregunta ¿cuál sería el desempeño de un inversionista si invierte solo en compañías con un adecuado manejo de agua en Latino Amética? Metodología: Se emplea la razón de consumo de agua entre ingresos (WTR) para medir la calidad de las políticas de manejo de agua en la empresa. También simula el desempeño de un inversionista invertido principalemente en empresas con el mejor WTR (del 6 de enero del 2005 al 20 de abril del 2022). Resultados: Al comparar el portafolio simulado contra el de mercado, los resultados sugieren que ambos tienen un desempeño similar en el corto plazo. En el largo plazo, las pruebas evidencian que el portafolio WTR tiene un riesgo sistemático menor (beta de 0.26), y su desempeño es más estable (media-varianza eficiente). Los resultados controlan el impacto de fluctuaciones cambiarias en algunos países latinoamericanos. Conclusiones: Los resultados pueden ser de utilidad para inversionistas activistas de consumo de agua, motivar mejores prácticas de manejo de agua en las empresas y reducir el riesgo de disposición de agua en años venideros.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[Water disposal risk]]></kwd>
<kwd lng="en"><![CDATA[water management]]></kwd>
<kwd lng="en"><![CDATA[portfolio management]]></kwd>
<kwd lng="en"><![CDATA[ESG investing]]></kwd>
<kwd lng="en"><![CDATA[water investing]]></kwd>
<kwd lng="en"><![CDATA[firm risk]]></kwd>
<kwd lng="en"><![CDATA[Latin American stock markets]]></kwd>
<kwd lng="es"><![CDATA[Riesgo de disponibilidad de agua]]></kwd>
<kwd lng="es"><![CDATA[manejo de agua]]></kwd>
<kwd lng="es"><![CDATA[administración de portafolios, inversión ESG]]></kwd>
<kwd lng="es"><![CDATA[riesgo de la empresa]]></kwd>
<kwd lng="es"><![CDATA[mercados de valores latinoamericanos]]></kwd>
</kwd-group>
</article-meta>
</front><back>
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