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Credible signal

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Credible signal
A signal that provides accurate information; a signal that can distinguish among senders.

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The fact that independent Arab media covered the event so well sent a credible signal to other Arabs about the Iraqi desire for democracy.
In the financial economy, for example, Myers and Majluf (1984) have shown how shareholders can become victims of adverse selection among firms, while John and Williams (1985) have highlighted how dividends can act as a credible signal of the profitability of the companies quoted.
 
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