THE EFFECTS OF MOTOR CARRIER DEREGULATION: A STOCK MARKET PERSPECTIVE

A before and after study of motor carrier stocks was undertaken to evaluate the economic impact of the Motor Carrier Act of 1980 on the theory that, if the law affected the ability of motor carriers to generate future net cash inflows, this would be reflected in motor carrier share prices. The results suggest that the stock market views motor carrier deregulation as providing a net positive benefit for motor carriers in general, large carriers more favorably than small, and specialized carriers more favorably than generalized commodities carriers. However it does not view diversified carriers any more favorably than nondiversified ones.