Chod, Jiri; Trichakis, Nikolaos; Tsoukalas, Gerry; … - 2019
We develop a theory that shows signaling a firm's fundamental quality (e.g., its operational capabilities) to lenders … through inventory transactions to be more efficient---it leads to less costly operational distortions---than signaling through … costs, market size, and inventory salvage value. Signaling through inventory being only tenable when inventory transactions …