Signaling approach

Signaling approach

Notion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm. This theory is also called the asymmetric information approach.

Signaling approach (on dividend policy)

The argument that dividend changes are important signals to investors about changes in management's expectation about future earnings.

Signaling Approach on Dividend Policy

The belief that the amount per share a company pays in dividends is a strong indication of what the management believes about future earnings. For example, if the company pays $5 per share when it had paid $8 per share the previous time dividends were disbursed, shareholders may take this as a signal that the management believes that earnings will soon decline. Some investors may use the signaling approach on dividend policy as a means to determine whether to buy or sell a stock.
References in periodicals archive ?
Chord signaling is a multi-wire signaling approach that is a generalization of differential signaling.
Procurement Purchasing Products Used for Plant Maintenance Automatic Signaling Approach Trains at Level Crossings, Respectively, Railway Equipment, as Annexes to the Specifications.
The ROS-specific bioidentical signaling approach constitutes a new type of therapy, which encompasses numerous indications:
The collaboration encompasses research on diagnostics based on a network signaling approach to analyzing patients' tumors as well as clinical trial research.
The determinants of financial structure: The incentive signaling approach. Bell Journal of Economics, 8, 23-40.
Another signaling approach is to transmit m orthogonal base-band signals or codes on a single carrier frequency.
This dividend signaling approach is based on the belief that investors prefer stable dividend over the years and consequently the market price of the shares of a company may be higher if the company distributes a stable dividend over the years.
Huffman, 1986, "The Information-Content of Dividends--A Signaling Approach", Journal of Financial and Quantitative Analysis, 21:47-58
The contract includes the design, supply and installation of all the vertical direction signs motorway sections Chasse sur Rhone / Bollene (A7), Bollene / Rognac (A7) Coudoux / Aix en Provence (A8) and the vertical signaling approach resting.
In this context, studies like, the job market signaling (Spence, 1973 and 1974), the financial incentive signaling approach (Ross, 1977), the signaling hypothesis test on Harris and Raviv (1985) by Acharya (1988), and signaling in insurance market by Rothschild and Stiglitz (1976), are relevant.
Looking out from the December 2001 data, both signaling approaches based on the Markov switching model--with either one or two critical values--predict that the recession would have ended by January 2002.
Ultrawideband signaling approaches TABULAR DATA OMITTED are being examined to see if they offer any unique advantages in this regard.