TY  - JOUR
AU  - Zingales,Luigi
TI  - Survival of the Fittest or the Fattest? Exit and Financing in the Trucking Industry
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6273
PY  - 1997
Y2  - November 1997
UR  - http://www.nber.org/papers/w6273
L1  - http://www.nber.org/papers/w6273.pdf
N1  - Author contact info:
Luigi Zingales
Booth School of Business
The University of Chicago
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-3196
Fax: 773/834-2081
E-Mail: luigi.zingales@ChicagoBooth.edu
AB  - 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.  "
ER  -