Journal ArticleDOI
Nondissipative Signaling Structures and Dividend Policy
TLDR
In this paper, the existence conditions for signaling equilibria in which the signal is not exogenously costly are derived for the continuum of classes case. But the authors focus on intertemporal consistency requirements and the role of insider trading observations.Abstract:
Existence conditions for signaling equilibria in which the signal is not exogenously costly are derived for the continuum of classes case. Applications to labor market models based on productivity quotas and time-profiles of wages, and an exploratory model of the "information content" of corporate dividends are discussed. The last application focuses on intertemporal consistency requirements and the role of insider trading observations.read more
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No Pain, No Gain: A Critical Review of the Literature on Signaling Unobservable Product Quality:
Amna Kirmani,Akshay R. Rao +1 more
TL;DR: In this paper, the authors focus on the ways a firm may signal the unobservable quality of its products through several marketing-mix variables, and develop a typology that classifies signals and discuss the available empirical evidence on the signaling properties of several marketing variables.
Journal ArticleDOI
Dividends, Dilution, and Taxes: A Signalling Equilibrium
Kose John,Joseph Williams +1 more
TL;DR: In this article, a signalling equilibrium with taxable dividends is identified, where corporate insiders with more valuable private information optimally distribute larger dividends and receive higher prices for their stock whenever the demand for cash by both their firm and its current stockholders exceeds its internal supply of cash.
Journal ArticleDOI
Information quality and the valuation of new issues
Sheridan Titman,Brett Trueman +1 more
TL;DR: In this article, it is shown that an entrepreneur with favorable information about his firm's value chooses a higher-quality auditor and investment banker than a seller with less favorable information, and that the firm value is an increasing function of auditor and investor quality.
Journal ArticleDOI
Information Reliability and a Theory of Financial Intermediation
TL;DR: In this paper, an analysis of when it will be beneficial for agents engaged in the production of information to form coalitions is presented, cast in a financial market framework, thus leading to an identification of conditions sufficient for the existence of financial intermediaries.
Journal ArticleDOI
Signaling Unobservable Product Quality through a Brand Ally
TL;DR: In this article, the authors examine the circumstances in which brand names convey information about unobservable quality and argue that a brand name can convey unobservability quality credibly when...
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