Abstract

http://ssrn.com/abstract=56109
 
 

References (35)



 
 

Citations (79)



 
 

Footnotes (19)



 


 



Survival of the Fittest or the Fattest? Exit and Financing in the Trucking Industry


Luigi Zingales


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)



Abstract:     
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: 58

JEL Classification: G32, L43, L92

working papers series





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Date posted: February 5, 1998  

Suggested Citation

Zingales, Luigi, Survival of the Fittest or the Fattest? Exit and Financing in the Trucking Industry. Available at SSRN: http://ssrn.com/abstract=56109 or http://dx.doi.org/10.2139/ssrn.56109

Contact Information

Luigi Zingales (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-3196 (Phone)
773-834-2081 (Fax)

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National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
University of Chicago - Polsky Center for Entrepreneurship
Chicago, IL 60637
United States
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
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References:  35
Citations:  79
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