Information Signaling

Information Signaling

Conveying intelligence through a firm's actions. A firm's dividend policy, for example, provides signals to investors concerning the value of the firm's stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Information Signaling

Hints as to a company's financial state and/or goals given through its actions. For example, a new issue of bonds may be an indication of plans for future expansion of operations and may affect the stock price.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
It is a protein with diverse biological functions within cells including cell adhesion, homeostatis of calcium ions, information signaling between cells, gene expression, and glycoprotein synthesis.
The separate estimations of noncertified coins, certified coins, and noncertified with and without a visual description allow us to analyze the impact of the seller's reputation in the presence of different information signaling mechanisms that affect the amount of uncertainty about coin quality.
Moreover, firms often repurchase shares for reasons unrelated to information signaling. For instance, a firm may repurchase shares for its employee stock ownership plan or for use in executive compensation.
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