Signaling approach

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, ...

Signaling approach
Definition: [crh] Notion that insiders in a firm have information that the market does not have, ...

Signaling approach
Notion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm.

that the market does not have, and that 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.
Signaling approach (on ...

See also: Capital structure, Optimal, Asymmetric information, Risk premium, Expected return