The relationship between motor carrier financial performance and safety performance

Abstract

This study examines the relationship between a motor carrier's financial position and its safety performance. New evidence is provided regarding this relationship. Data were taken from the Motor Carrier Safety Status Measurement System (SafeStat) database and the Motor Carriers Annual Reports dataset. The sample has 657 carriers across all major industry segments. Negative binomial regression and multiple regression analysis were applied to obtain the results. The results provide evidence to indicate that a stronger financial position in a previous year is significantly associated with better safety performance in a subsequent year.