
Signaling Theory in Management
Chapter from the book:
Mücevher,
M.
H.
(ed.)
2025.
New Concept and Theory Proposals for Management Science.
Synopsis
Signaling theory emerges as a critical mechanism that enables organizations to reduce information asymmetry and facilitate more informed decision-making. From a corporate perspective, providing reliable and consistent signals is considered a key indicator of reputation, financial performance, and corporate transparency, playing a decisive role in gaining the trust of investors and stakeholders. This study highlights the impact of signals across various domains, including financial markets, human resource management, entrepreneurship, and corporate strategy, emphasizing the role of effective signal utilization in achieving competitive advantage and sustainable success. With the acceleration of digitalization and increased access to information, the importance of signal management has further intensified, underscoring the necessity for companies and individuals to adopt a strategy based on transparency and reliability.