The Effects of Safety Practices, Technology Adoption, and Firm Characteristics on Motor Carrier Safety

This paper explores how firms make safety-related decisions. The theory of the firm suggests that firms should maximize profit by investing in safety until marginal cost is equal to the marginal benefit. A theoretical framework is developed in this paper that proposes that, in the face of uncertainty regarding the occurrence of vehicle accidents, firms maximize the expected profit by choosing an optimal output level and an optimal mix of safety inputs. The empirical section of this paper tests the effects of safety practices, technologies and firm characteristics on the carrier injury and fatality accident rates. The results show that firms with a safety performance marketing strategy have significantly lower accident rates. This supports the contention that firm management policies can directly impact the safety performance of the firm.


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  • Accession Number: 01006303
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 21 2005 10:34PM