THE RELATIONSHIP BETWEEN PROFITABILITY AND SAFETY PERFORMANCE IN TRUCKING FIRMS

The study addresses the nature of the relationship between profitability and safety performance in the trucking industry. The role of deregulation in influencing accident rates is not addressed formally. Knowledge is very limited regarding the linkages between deregulation and financial and safety performance because the complexities are too immense to effectively assess whether or not deregulation has led to a reduction in managerial incentives to perform the transportation function safely. The first section summarizes the knowledge derived from empirical works analyzing the relationship between profitability and safety. The next section outlines the methodology employed, the data and variables used in the statistical test, and the models which generate estimates of the relationship. The findings of the study are then presented and discussed, and suggestions for future work are offered.