Signaling Theory: A Review and Assessment

@article{Connelly2011SignalingTA,
  title={Signaling Theory: A Review and Assessment},
  author={Brian L. Connelly and S. Trevis Certo and R. Duane Ireland and Christopher R. Reutzel},
  journal={Journal of Management},
  year={2011},
  volume={37},
  pages={39 - 67}
}
Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information. Typically, one party, the sender, must choose whether and how to communicate (or signal) that information, and the other party, the receiver, must choose how to interpret the signal. Accordingly, signaling theory holds a prominent position in a variety of management literatures, including strategic management, entrepreneurship, and human resource management… 

Figures and Tables from this paper

Signalling Theory and Equilibrium in Strategic Management Research: An Assessment and a Research Agenda
Actors within organizations commonly must make choices armed with incomplete and asymmetrically distributed information. Signalling theory seeks to explain how individuals are able to do so. This
Theoretical perspectives on corporate disclosure: a critical evaluation and literature survey
Purpose - – The purpose of this paper is to provide an extensive and critical overview of the theoretical perspectives used in the accounting disclosure literature including economic theories,
Insights of Signaling Theory for Acquisitions Research
TLDR
Signaling theory has been used to explain many M&A decisions and outcomes and has offered fresh perspectives in the mature literature on acquisitions, and it can contribute to an improved understanding of firms’ search for acquisition opportunities as well as target selection.
Second‐Hand Signals: How and Why Firms are Being Referenced in Scientific Publications
TLDR
It is argued how this second-hand nature of signals goes beyond a simple dyadic focus on senders and receivers of signals, and thus elucidates the more complex interrelations of the various types of agents involved in signaling phenomena.
Services under new management: the myth of a fresh start
The purpose of this study is to examine the consumer-side effects of “under new management” (UNM) signs. The authors integrate cue-utilization theory and relevance theory to guide hypotheses about
The Use of Signals in New-Venture Financing: A Review and Research Agenda
The use of signals to overcome information asymmetries and reduce the uncertainty inherent in resource acquisition has become a prominent theme in new-venture financing literature. In particular, the
A Knowledge-centric Examination of Signaling and Screening Activities in the Negotiation for Information Systems Consulting Services
TLDR
The findings highlight that both parties signal and screen and withhold information and that the extent of project knowledge (tacit or explicit) affects how they do so.
Examination of japanese firms’ announcement of m&a budgets: From the perspective of signaling theory and impression management theory
Abstract In the rapidly changing and globalizing environment, mergers and acquisitions (M&As) have become increasingly important. In this study, we paid specific attention to the voluntary
Signaling the Adoption of the Benefit Corporation Model: A Step towards Transparency
Using the signaling theory as a reference, this research conducts an in-depth analysis of the adoption of the benefit corporation model, a legal and governance framework introduced into Italian
...
...

References

SHOWING 1-10 OF 111 REFERENCES
Signaling Theory, Strategic Interaction, and Symbolic Capital1
Signaling theory provides an opportunity to integrate an interactive theory of symbolic communication and social benefit with materialist theories of individual strategic action and adaptation. This
No Pain, No Gain: A Critical Review of the Literature on Signaling Unobservable Product Quality
Recent research in information economics has focused on signals as mechanisms to solve problems that arise under asymmetric information. A firm or individual credibly communicates the level of some
Entrepreneurial signaling to attract resources: the case of franchising
Why firms and individuals reveal information is the subject of considerable theoretical research, but little empirical work has been possible due to a lack of suitable data. In this paper we examine
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
In this paper we draw on recent progress in the theory of (1) property rights, (2) agency, and (3) finance to develop a theory of ownership structure for the firm.1 In addition to tying together
Signaling Firm Value through Board Structure: An Investigation of Initial Public Offerings
The relationship between boards of directors and firm performance, whether in the entrepreneurial context or otherwise, has long intrigued scholars. To date, no systematic relationship has been
Signaling Unobservable Product Quality through a Brand Ally
In this article, the authors examine the circumstances in which brand names convey information about unobservable quality. They argue that a brand name can convey unobservable quality credibly when
Feedback‐seeking behavior within multinational corporations
Notwithstanding their concern with intra-MNC control mechanisms, scholars have overlooked the complementary phenomenon of self-regulatory behavior by subsidiaries. In this paper, we take the first
Information and Economic Analysis: A Perspective
Ten years ago, I delivered a paper before this group with the title, 'Information and Economic Analysis.' I chose the title deliberately: I did not call the subject on which I was speaking the
Toward a theory of competitive market signaling: A research agenda
Competitive market signals are conceptualized as announcements or previews of potential actions intended to convey or to gain information from competitors. This paper develops a set of propositions
...
...