Credible signal
A signal that provides accurate information; a signal that can be distinguish among senders. |
Similar financial terms
Signaling view (on dividend policy)The argument that dividend changes are important signals to investors about changes in management's expectation about future earnings.
Signaling approach
Approach to the determination of the optimal capital structure asserting that insiders in a firm have information that the market does not have; therefore, 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.
Signal
The process of conveying information through a firm's actions.
