private sector, impairing the stabilizing effects of the policy. Using a theoretical model, we show that these signaling … identify fiscal news with different degrees of signaling effects and find that such effects weaken or, in extreme cases, even …

portfolios to investors. We extend the signaling model for single sales of risky assets to portfolio sales. We identify … conditions under which signaling at the portfolio level dominates signaling at the single asset level. In particular, when banks … have better information about loan types on their books, and some commitment power to sales, can profit by pooling assets …

Contrary to the central prediction of signaling models, changes in profits do not empirically follow changes in … that payout policy conveys information about future cash flow volatility. Our methodology can be applied more generally to …