Survival of the Fittest or the Fattest? Exit and Financing in the Trucking Industry
University of Chicago Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); University of Chicago - Polsky Center for Entrepreneurship; European Corporate Governance Institute (ECGI)
NBER Working Paper No. w6273
This paper studies the impact that capital market imperfections have on the natural" selection of the most efficient firms by estimating the effect of the pre-deregulation level of" leverage on the survival of trucking firms after the Carter deregulation. Highly leveraged" carriers are less likely to survive the deregulation shock, even after controlling for various" measures of efficiency. This effect is stronger in the imperfectly competitive segment of the" motor carrier industry. High debt seems to affect survival by curtailing investments and reducing" the price per-ton-mile that a carrier can afford to charge after deregulation. "
Number of Pages in PDF File: 51working papers series
Date posted: July 1, 2000
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 0.563 seconds