Contrary to the central prediction of signaling models, changes in profits do not empirically follow changes in … dividends. We show both theoretically and empirically that dividends signal safer, rather than higher, future profits. Using the … model's predictions, cash-flow volatility changes in the opposite direction from that of dividend changes and larger changes …

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 …

introduce and determine a rational signaling equilibrium which adds two domination-based conditions to the belief structure of a …

show that herding behavior plays an important signaling role in reducing opportunity costs if the auction does not receive … and highlight the controversial effects of signaling mechanisms on adverse selection in crowdfunding markets. …

We analyze optimal redistribution in the presence of labor market signaling where innate productive ability is not only … unobserved by the government, but also by prospective employers. Signaling in both one and two dimensions is considered, where in … redistributing income and affecting signalling incentives is analyzed, as well as extended tax systems that combine income taxation …

In Spence's (1973) signaling by education model and in many of its extensions, firms can only infer workers …' productivities. We characterize the trade-offs between signaling by workers and costly information acquisition by firms. Information … workers have low productivity. Our analysis applies also to other signaling problems, e.g. the financial structure of firms …

and 30% to education signaling workers' ability. …