Signaling to Partially Informed Investors in the Newsvendor Model

Companies face pressure from external investors that leads them to make suboptimal operations decisions. This pressure arises from three forces: a strong prior belief that firms are of a "low" type (one with a low quality INVESTMENT opportunity), an inability for firms to mitigate the information asymmetry regarding their actual type, and an emphasis on short-term valuation.

Website: http://www.arjonline.org/engineering/american-research-journal-of-computer-science-and-information-technology/