FINANCIAL POLICY, INTERNAL CONTROL, AND PERFORMANCE SEALED-AIR-CORPORATIONS LEVERAGED SPECIAL DIVIDEND

• 成果类型: Article
• 署名作者: WRUCK, KH
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(94)90023-X
• 发表日期: 1994
• 页码: 157-192
• 关键词: Leverage; Dividends; ORGANIZATIONS; Restructuring; financial policy

摘要

This paper examines the role of financial policy as a catalyst for organizational change. The subject is Sealed Air Corporation, a company with substantial free cash flow that undertakes a leveraged special dividend. While the stock price response to announcement is typical, Sealed Air exhibits dramatic, sustained, post-dividend performance improvement. Evidence indicates this performance results from managers' conscious and successful use of financial leverage as a tool to disrupt the status quo and promote internal change, including establishing a new objective, changing compensation systems, and reorganizing manufacturing and capital budgeting processes.