THE IMPACT OF THE MOTOR CARRIER ACT OF 1980 ON MOTOR CARRIER COMMON STOCK RETURNS

Much concern has been expressed about the long-run financial viability of the motor freight carriage industry in the wake of deregulation. Most studies of the issue have focused on the prognoses of carriers and shippers. This paper investigates investors' reactions to the passage of the Motor Carrier Act of 1980. Residual analysis is employed to determine whether investors perceive a detrimental, a favorable or no significant impact upon the future financial performance of that segment of the industry which is publicly held. The findings of this investigation reveal that investors viewed the deregulation legislation as exerting no significant impact upon the sample carriers. As a result, deregulation's impact upon the cost of equity capital should not prove a deterrent to the expansion of these firms into new markets. (Author/TRRL)

  • Availability:
  • Corporate Authors:

    Pergamon Press, Incorporated

    Headington Hill Hall
    Oxford OX30BW,    
  • Authors:
    • Van Auken, H
    • Crum, M R
  • Publication Date: 1985-2

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Filing Info

  • Accession Number: 00399406
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD, TRIS
  • Created Date: Aug 25 2004 2:43AM