A New Look at the Longitudinal Relationship Between Motor Carrier Financial Performance and Safety

In theory, the financial performance of motor carriers is often used as a measure to predict their safety. However, the research published to date only provides mixed evidence supporting this view. The current investigation aims to resolve these inconsistent findings by building up a theoretical framework based on strain theory to clarify why static financial performance and year-to-year changes in financial performance influence carrier safety. Mixed-effects models were fitted to a repeated-measure, longitudinal database of publicly traded motor carrier financial performance and safety dimensions obtained from the Federal Motor Carrier Safety Administration's Safety Measurement System . The measures were: Unsafe Driving, Hours-of-Service Compliance (HOS Compliance), and Vehicle Maintenance. The authors also created an aggregate measure of carrier safety, Overall Safety, by averaging the standardized natural log transformed values of the three reported measures. The results showed that both absolute financial performance and change in financial performance over time are positive predictors of motor carrier safety. The authors share the managerial and policy implications of their research, along with study limitations and suggestions for future research.


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  • Accession Number: 01689547
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 30 2018 9:49AM