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Safety Regulations and the Uncertainty of Work‐Related Road Accident Loss: The Triple Identity of Chinese Local Governments Under Principal–Agent Framework
Author(s) -
Lu Liangdong,
Huang Hong,
Wei Jiuchang,
Xu Jia
Publication year - 2020
Publication title -
risk analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 130
eISSN - 1539-6924
pISSN - 0272-4332
DOI - 10.1111/risa.13452
Subject(s) - panel data , mediation , government (linguistics) , transparency (behavior) , work (physics) , business , bootstrapping (finance) , public economics , risk analysis (engineering) , operations management , engineering , computer security , economics , computer science , econometrics , political science , finance , mechanical engineering , linguistics , philosophy , law
This study examines how government safety regulations affect the uncertainty of work‐related road accident loss (UWRAL) by considering the multi‐identity of local governments in the relationship among the central government, the local governments, and enterprises. Fixed effects panel models and mediation analyses with bootstrapping were conducted to test the hypotheses using Chinese provincial panel data from 2008 to 2014. Given the complexity and nonlinear characteristics of road safety systems, a new approach based on self‐organized criticality theory is proposed to measure the uncertainty of road accident loss from a complex system perspective. We find that a regional government with detailed safety work planning (SWP), high safety supervision intensity (SSI), and safety information transparency (SIT) can decrease the UWRAL. Furthermore, our findings suggest that SSI and SIT partially mediate the relationship between the SWP of regional governments and the UWRAL, with 19.7% and 23.6% indirect effects, respectively. This study also provides the government with managerial implications by linking the results of risk assessment to decision making for risk management.