Signaling Is Only with Good Intent? Think Again! Introduce A Triangle Model of Signaling Through Research on Short Sale Attacks of NASDAQ Listed Chinese Company

Abstract

This template explains and demonstrates how to prepare your camera-ready paper for Trans Tech Publications. The best is to read these instructions and follow the outline of this text. Please make the page settings of your word processor to A4 format (21 x 29,7 cm or 8 x 11 inches); with the margins: bottom 1.5 cm (0.59 in) and top 3 cm (1.18 in), right/left margins must be 2 cm (0.78 in). This template explains and demonstrates how to prepare your camera-ready paper for Trans Tech Publications. The best is to read these instructions and follow the outline of this text. Please make the page settings of your word processor to A4 format (21 x 29,7 cm or 8 x 11 inches); with the margins: bottom 1.5 cm (0.59 in) and top 3 cm (1.18 in), right/left margins must be 2 cm (0. The signaling theory has been developed for many years, and applied to various fields. The fraud scandals of three Chinese companies listed on NASDAQ stock exchange were hereby dissected via case analysis, during which process, short sellers were found to prepare their attack on targeted Chinese companies using atypical signaling. Once the signal of fraud research report generated by short sellers was observed by targeted Chinese companies, the companies would also get engaged in signaling to defend their reputation and fend off short sellers. The stock holders of three public listed Chinese companies were marked as signal receiver by short sellers and three Chinese companies. The contradicting signals of two different signalers collided with each other and degenerated into weaker signals. After analyzing the behaviors of three parties, the signaling theory was considered applicable for those cases, which could also be expanded to the research on more complicated scenarios. More importantly, a triangle time line model was formulated to explain a complicated scenario where two signalers targeted at one receiver with their own signaling. This investigation aims to encourage more signaling theory research that expands the research frontier.