Journal of Transportation Management


Since the late 1970's the United States has progressively deregulated the motor carrier industry. Throughout the 1980's, deregulation was viewed as a positive trend by most industry practitioners. Past research has determined that, despite the fact that bankruptcies have increased since deregulation, the motor carrier industry has benefitted by less government intervention. The current study attempts to ascertain if motor carrier deregulation is still perceived positively in the mid-1990's. This research uses an event study methodology to examine the immediate financial impact of the ICC Termination Act of 1995 on 44 motor carrier industry participants. The results indicate deregulation is still perceived positively by shareholders as illustrated by the average publicly traded motor carrier benefittingby between $1.25 million and $6.1 million duringthe period surrounding termination of the Interstate Commerce Commission. In all likelihood, shareholders of companies in this industry benefitted due to the perception that industry deregulation leads to the ability to expand and pursue business opportunities previously restricted while operatingunder a more regulated regime.