@techreport{NBERw3193,
 title = "Signaling and Accounting Information",
 author = "Stewart C. Myers",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3193",
 year = "1989",
 month = "December",
 URL = "http://www.nber.org/papers/w3193",
 abstract = {This paper develops a signaling model in which accounting information improves real investment decisions. Pure cash flow reporting is shown to lead to underinvestment when managers have superior information but are acting in shareholders' interests. Accounting by prespecified, "objective" rules alleviates the underinvestment problem.},
}