The Effects of Safety Practices, Technology Adoption, and Firm Characteristics on Motor Carrier Safety by Sarah J.
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Theory of the firm suggests that firms should maximize profit by investing in safety until the
marginal cost is equal to the marginal benefit. This paper tests the relationship between firm safety
performance and safety practices, safety technologies, and firm marketing strategies. By testing the
impact of the safety performance marketing strategy on carrier crash rates, it can be shown that firm
managers have control over the safety performance of their firm through management decisions.