Implementation of Signaling Theory in Financial Management: A Bibliometric Analysis

Abstract

Purpose: The objective of this research is twofold: (1) to elucidate the progression of studies pertaining to the application of signaling theory in financial management, and (2) to scrutinize the bibliometric analysis of the implementation of signaling theory in financial management. Method: The employed technique is clustering, overlay, and density of bibliometric analysis. The utilized tools include publishing platforms such as Publish or Perish, Google Scholar, and VosViewer. Results and Conclusion: The research findings indicate a limited amount of literature exploring the utilization of signaling theory in financial management. This is evident in the minimal growth in the number of papers published between 1994 and 2023, with an average of only 1 to 3 papers per year. Research Implication: Concerning the primary keywords that commonly arise in this study, specifically "theory" and "signaling theory", there exist five clusters of keywords with the utmost frequency of occurrence. Applying signaling theory in financial management has been demonstrated to enhance investors' propensity to allocate their capital. Originality/Value: The role of financial management is vital in determining the company's profitability. Implementing financial management using the signaling theory approach is a viable method to achieve profitability. The theory of signaling is instrumental in conveying signals to investors regarding the financial state of the company. The findings of this study can offer valuable understanding regarding the implementation of signaling theory in financial management, thereby serving as a basis for considering the utilization of this theory.