3. THE EFFECTS OF TRUCKING FIRM FINANCIAL PERFORMANCE ON DRIVER SAFETY

Daniel A. Rodriguez, Marta Rocha and Michael H. Belzer

Research in Transportation Economics, 2004, vol. 10, issue 1, 35-55

Abstract: This chapter uses trucking firm-level information to address the paucity of multivariate analysis accounting for the safety effect of various types of truck driver compensation and firm financial performance. Using negative binomial regression models, we find that small firms with high liquidity are correlated with better safety performance. Likewise, small firms that devote a higher share of their revenues to labor expenses tend to have better safety outcomes. Although the dataset is limited in many ways, these associations suggest that small firms may be particularly sensitive to the competitive nature of the truckload sector, relying on the human capital of drivers to overcome safety challenges due to their size.

Date: 2004
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