Signaling Hypothesis Research Articles

The impact of emotional facial expressions on reflexive attention depends on the aim of dynamic gaze changes: An ERP study.

The emotional expression and gaze direction of a face are important cues for human social interactions. However, the interplay of these factors and their neural correlates are only partially understood. In the current study, we investigated ERP correlates of gaze and emotion processing following the initial presentation of faces with different emotional expressions (happy, neutral, angry) and an averted or direct gaze direction as well as following a subsequent change in gaze direction that occurred in half of the trials. We focused on the time course and scalp topography of the N170 and EPN components. The N170 amplitude was larger to averted than direct gaze for the initial face presentation and larger to gaze changes from direct to averted than from averted to direct in response to the gaze change. For the EPN component in response to the initial face presentation, we replicate classic effects of emotion, which did not interact with gaze direction. As a major new finding, changes from direct to averted gaze elicited an EPN-like effect when the face showed a happy expression. No such effect was seen for angry expressions. We conclude that happy faces reflexively attract attention when they look at the observer rather than away from the observer. These results for happy expressions are in line with the shared signal hypothesis that posits a better processing of expressions if their approach or avoidance tendency is consistent with gaze direction. However, the shared signal hypothesis is not supported by the present results for angry faces.

On Applicability of Quantum Formalism to Model Decision Making: Can Cognitive Signaling Be Compatible with Quantum Theory?

This note is devoted to the problem of signaling (marginal inconsistency) in the Bell-type experiments with physical and cognitive systems. It seems that in quantum physics, this problem is still not taken seriously. Only recently have experimenters started to check the signaling hypothesis for their data. For cognitive systems, signaling was statistically significant in all experiments (typically for decision making) performed up to today. Here, one cannot simply ignore this problem. Since signaling contradicts the quantum theory of measurement for compatible observables, its statistical significance in experiments with humans can be considered as an objection for quantum-like modeling-applications of quantum theory to cognition, decision making, psychology, economics and finance, social and political science. In this paper, we point to two possible sources of signaling generation that are consistent with quantum measurement theory. Thus, the signaling objection for quantum-like modeling is not catastrophic. One of these sources is the direct physical signaling about selection of experimental settings, questions or tasks in quantum-like studies. Another possible source is a state modification dependent on experimental settings. The latter was a rather common source of signaling in quantum physics. Since the physical size of the brain is very small comparing with the light velocity, it seems to be impossible to prevent the direct physical signaling (with electromagnetic waves) between the brain's areas processing two questions a and b. However, if, for these questions, not the electromagnetic waves, but electrochemical communication plays the crucial role, the experimenter may hope to make signaling weaker by answering the questions faster. The problem of question-dependent mental state modification seems to be solvable via smarter experimental design. This paper can be useful both for physicists interested in quantum foundations and for researchers working in quantum-like studies, e.g., applying the quantum theory to model decision making or psychological effects. This paper is solely about quantum theory. Thus, we do not consider general contextual probabilistic models.

Sensitivity estimation for dark matter subhalos in synthetic Gaia DR2 using deep learning

The abundance of dark matter subhalos orbiting a host galaxy is a generic prediction of the cosmological framework, and is a promising way to constrain the nature of dark matter. In this paper, we investigate the use of machine learning-based tools to quantify the magnitude of phase-space perturbations caused by the passage of dark matter subhalos. A simple binary classifier and an anomaly detection model are proposed to estimate if stars or star particles close to dark matter subhalos are statistically detectable in simulations. The simulated datasets are three Milky Way-like galaxies and nine synthetic Gaia DR2 surveys derived from these. Firstly, we find that the anomaly detection algorithm, trained on a simulated galaxy with full 6D kinematic observables and applied on another galaxy, is nontrivially sensitive to the dark matter subhalo population. On the other hand, the classification-based approach is not sufficiently sensitive due to the extremely low statistics of signal stars for supervised training. Finally, the sensitivity of both algorithms in the Gaia-like surveys is negligible. The enormous size of the Gaia dataset motivates the further development of scalable and accurate data analysis methods that could be used to select potential regions of interest for dark matter searches to ultimately constrain the Milky Way’s subhalo mass function, as well as simulations where to study the sensitivity of such methods under different signal hypotheses.

Economic policy uncertainty and insider trading

AbstractIn this article, we examine the effects of economic policy uncertainty (EPU) on insider trading. Two hypotheses predict that EPU is positively related to insider trading volume and profitability: (1) the private benefits hypothesis, which states that insiders exploit their information advantage to realize abnormal profits, and (2) the signaling hypothesis, which states that insiders trade to signal private information to stock market participants. We find that EPU is positively and significantly related to the profitability of insider purchases, and that insiders purchase more frequently during high‐EPU periods. Additional analysis provides strong support for the signaling hypothesis but no support for the private benefits hypothesis.

Why do red/purple young leaves suffer less insect herbivory: tests of the warning signal hypothesis and the undermining of insect camouflage hypothesis

Why do red/purple young leaves suffer less insect herbivory: tests of the warning signal hypothesis and the undermining of insect camouflage hypothesis

Does ESG Performance Enhance Financial Flexibility? Evidence from China

Environmental, social, and governance (ESG) performance may be one of the strategies firms adopt to enhance their financial flexibility in response to an increasingly uncertain environment and difficult sustainability conditions. We use A-share listed firms in China from 2015 to 2020 as samples to test the influencing mechanism of ESG performance on financial flexibility. The empirical results indicate that ESG performance significantly enhances financial flexibility. The mechanism results show that financing constraints mediate ESG performance and firms’ financial flexibility. The additional analysis suggests that environmental uncertainty and market attention have significant positive moderating effects. That is, the promotion effect of firms in high uncertainty environments is more apparent, and the same is true in high market attention. This study supports instrumental stakeholder theory, signaling, and social impact hypothesis. It has enlightenment significance for firms, investors, and creditors to evaluate ESG performance and government departments to formulate relevant policies.

The shared signal hypothesis: Facial and bodily expressions of emotion mutually inform one another.

Decades of research show that contextual information from the body, visual scene, and voices can facilitate judgments of facial expressions of emotion. To date, most research suggests that bodily expressions of emotion offer context for interpreting facial expressions, but not vice versa. The present research aimed to investigate the conditions under which mutual processing of facial and bodily displays of emotion facilitate and/or interfere with emotion recognition. In the current two studies, we examined whether body and face emotion recognition are enhanced through integration of shared emotion cues, and/or hindered through mixed signals (i.e., interference). We tested whether faces and bodies facilitate or interfere with emotion processing by pairing briefly presented (33 ms), backward-masked presentations of faces with supraliminally presented bodies (Experiment 1) and vice versa (Experiment 2). Both studies revealed strong support for integration effects, but not interference. Integration effects are most pronounced for low-emotional clarity facial and bodily expressions, suggesting that when more information is needed in one channel, the other channel is recruited to disentangle any ambiguity. That this occurs for briefly presented, backward-masked presentations reveals low-level visual integration of shared emotional signal value.

Dividend Policy of Banking Firms in Nepal: A Survey of Managerial Perspectives

This paper analyses the views of managers of banking firms in Nepal to understand their perceptions towards dividend theories and factors affecting dividend policy. Based on a mail survey among 79 directors and CEOs of banking firms in Nepal during the months January to March 2022, the study suggests that managers prefer at most the combination of cash and stock dividend to be distributed to their shareholders. With respect to their preferences towards given form of dividend payments, managers claim that they generally go with shareholders’ preferences in deciding the forms of dividend payments. The study results further demonstrate strong support for signalling and bird-in-hand explanations of dividend theories. Among the 14 factors affecting dividend policy, the study reveals that firm’s level of current earnings, including the pattern of past earnings and stability of earnings are important factors in determining dividend policy of banking firms in Nepal. The survey evidence documented in this study further verifies the significance of signalling hypothesis in recent period in case of Nepal to explain why managers prefer to pay dividend. The main implication of the findings of this study is that it explores, in the changing context of meeting regulatory capital requirements, how the banking managers perceive about dividend policy of Nepalese banking firms. The finding of the study is primarily useful to investors seeking for investment in dividend paying banking firms in Nepal

The Biological Roots of Music and Dance : Extending the Credible Signaling Hypothesis to Predator Deterrence.

After they diverged from panins, hominins evolved an increasingly committed terrestrial lifestyle in open habitats that exposed them to increased predation pressure from Africa's formidable predator guild. In the Pleistocene, Homo transitioned to a more carnivorous lifestyle that would have further increased predation pressure. An effective defense against predators would have required a high degree of cooperation by the smaller and slower hominins. It is in the interest of predator and potential prey to avoid encounters that will be costly for both. A wide variety of species, including carnivores and apes and other primates, have therefore evolved visual and auditory signals that deter predators by credibly signaling detection and/or the ability to effectively defend themselves. In some cooperative species, these predator deterrent signals involve highly synchronized visual and auditory displays among group members. Hagen and Bryant (Human Nature, 14(1), 21-51, 2003) proposed that synchronized visual and auditory displays credibly signal coalition quality. Here, this hypothesis is extended to include credible signals to predators that they have been detected and would be met with a highly coordinated defensive response, thereby deterring an attack. Within-group signaling functions are also proposed. The evolved cognitive abilities underlying these behaviors were foundations for the evolution of fully human music and dance.

Bacterial Signal Peptides- Navigating the Journey of Proteins.

In 1971, Blobel proposed the first statement of the Signal Hypothesis which suggested that proteins have amino-terminal sequences that dictate their export and localization in the cell. A cytosolic binding factor was predicted, and later the protein conducting channel was discovered that was proposed in 1975 to align with the large ribosomal tunnel. The 1975 Signal Hypothesis also predicted that proteins targeted to different intracellular membranes would possess distinct signals and integral membrane proteins contained uncleaved signal sequences which initiate translocation of the polypeptide chain. This review summarizes the central role that the signal peptides play as address codes for proteins, their decisive role as targeting factors for delivery to the membrane and their function to activate the translocation machinery for export and membrane protein insertion. After shedding light on the navigation of proteins, the importance of removal of signal peptide and their degradation are addressed. Furthermore, the emerging work on signal peptidases as novel targets for antibiotic development is described.

Dividend Policy and Earnings Management: Evidence from the U.S. Aerospace and Defence Industry

ABSTRACT This study provides evidence on how dividend policy affects earnings management. Our goal is to contribute to the literature by employing data from a sector (aerospace and defence) that to the best of our knowledge has never been studied before in terms of the relationship between earnings management and dividend policy. Our sample consists of 17 listed companies in the U.S. Stock Exchanges, examined for the 2012-2019 period. We employ panel data linear regression to conclude that the dividend policy positively affects the management’s practice of discretionary accruals manipulation. Consequently, our results support the signalling hypothesis that points to the importance of a stable dividend policy. Specifically, we provide relevant and robust information on management decision making regarding value return to the shareholders of U.S. aerospace and defence companies. Finally, we provide future research proposals that may shed more light on this obscure relationship.

Effects of temporary earnings on dividends in Korea

ABSTRACT We examine the effects of temporary earnings on dividends using cash dividend data of Korean firms over the period of 2001 to 2017. We find that firms using private debts exclusively increase dividends as temporary earnings increase while those with public debts do not change their dividends. We further find that the positive effects of temporary earnings on dividends in firms with only private debts is hampered by investment opportunity. These results are consistent with the precautionary savings hypothesis of firms under financing constraints as well as signalling hypothesis of public debts.

Signal strength adjustment behavior: Evidence from share repurchases

This paper extends the signaling hypothesis by investigating the signal strength adjustment behavior with respect to the announcement of an open market repurchase (OMR). Given that an OMR is a non-binding commitment for the repurchasing firm, the stock market would likely scrutinize the credibility of the undervaluation signal from the OMR announcement of the firm. This may compel the manager to engage in various mechanisms in order to strengthen the undervaluation signal of the OMR announcement. This paper investigates whether managers of repurchasing firms would modify the terms of the OMR program when the simultaneous announcements of bad news threaten the credibility of the signal from the OMR announcements. Consistent with our signal strength adjustment hypothesis, we find that managers of repurchasing firms increase (shorten) the repurchase plan size (period) with the magnitude of bad news in the simultaneous announcements. Our results also show that the stock market reacts positively to the signal strength adjustments, indicating that they are informative to the market. These results hold after using various techniques to control for sample selection bias.

Disclosed qualitative factors and underpricing: an empirical evidence from Indian IPO market

PurposeThe academic research into underpricing of initial public offerings (IPOs) offers many explanations, i.e. signalling, financial and market hypothesis. However, another set of information, namely, “Qualitative Factors” (along with financial and others), are largely reported by the issuing firms in the prospectus. However, to the best of the authors’ knowledge no such systematic study has been carried out on how firms’ qualitative factors impact the IPO valuation. This paper aims to addresses this gap.Design/methodology/approachUsing a sample of 82 IPOs issued from 2014 to 2020, we investigate the issuing firm’s pattern of reporting qualitative factors. These qualitative factors are subjected to factor analysis. The authors classify all reported factors across firms into a few categories using principal component analysis. The authors also investigate the impact of these factors on IPO underpricing using OLS regression.FindingsThe authors find that the qualitative information relating to market leadership, established brand image and modern scalable information technology infrastructure significantly influences underpricing. The authors also document that market leadership and brand image are the influential reported quality factors that reduce underpricing. Moreover, location advantage, good customer relationship, established relationship with a client, track record of growth and profitability, experienced promoter and management team failed to influence underpricing.Originality/valueThe outcome of this piece of research offers additional signalling as an attestation of quality for the issue. The authors further argue that the amount of qualitative information disclosed by the managers in the prospectus to support the pricing should not be ignored.

Insights on the historical biogeography of Philippine domestic pigs and its relationship with continental domestic pigs and wild boars.

The Philippine archipelago was believed to have never been connected to the Asian continent even during the severe Quaternary sea-level drops. As a result, the history of domestic pig (Sus scrofa) dispersal in the Philippines remains controversial and must have some anthropogenic origin associated with human migration events. In this study, the context of origin, dispersal, and the level of genetic introgression in Philippine domestic pigs were deduced using mitochondrial DNA D-loop analysis altogether with domestic pigs and wild boar corresponding to their geographic origin. The results revealed considerable genetic diversity (0.900±0.016) and widespread Asian pig-ancestry (94.60%) in the phylogenetic analysis, with admixed European pig-origin (5.10%) harboring various fractions of ancestry from Berkshire and Landrace. The close genetic connection between the continental wild boars and domestic pigs present in the Philippine domestic pigs corroborates our hypothesis of a genetic signal that may be associated with the recently reported multiple waves of human migrations to the Philippines. The Haplogroup D7, reported to occur only in Indo-Burma Biodiversity Hotspots, included a high frequency of Philippine domestic pig haplotypes (54.08%), which poses an interesting challenge because its distribution is not consistent with the hypothesized migration route of Neolithic Austronesian-speaking populations. We detected the first Pacific Clade signature and ubiquitously distributed D2 haplotypes (Asian major) on several Philippine islands. The analyses of mismatch distribution and neutrality test were consistent with the Bayesian skyline plot which showed a long stationary period of effective population size. The population decline was consistent with the pronounced population bottleneck in Asian and European pigs during the interglacial periods of the Pleistocene. The results of this study will support the conservation strategies and improvements of economically important genetic resources in the Philippines.

Senior-subordinated structure: buffer or signal in securitisation?

By exploiting a unique and proprietary dataset comprising granular deal- and tranche-level data on a global portfolio of securitisation deals, we empirically test the buffer vs the signalling hypothesis of credit enhancements in securitisation. We do so by focusing on one internal credit enhancement associated with the design of financial securities in securitisation, i.e. subordination. This study provides novel evidence on the role played by subordination in securitisation, suggesting that a real dichotomy between the buffer and signalling effects does not hold. Our findings indeed highlight that subordination serves both as a buffer against observable risk and as a signal of unobservable credit quality to third-party investors in the market; moreover, our results are robust to a wide battery of robustness tests. Our findings, of international relevance, contribute to the literature on information asymmetries between originators and investors and offer new policy insights in light of the recent agreement reached by European lawmakers with national governments to revive the European securitisation market.

Political sentiment and stock crash risk

PurposeThis paper examines the relation between political sentiment and future stock price crash risk.Design/methodology/approachThis study employs firm-level political sentiment from earnings conference calls. The empirical analysis applies panel regressions on 40,254 US firm-year observations between 2002 and 2020, controlling for various firm-specific determinants of crash risk and firm-, industry- as well as time-fixed effects.FindingsThe study identifies a negative association between both the level and the change of political sentiment and stock crash risk. Further analysis shows that the predictive power of political sentiment is independent of either non-political sentiment or political risk and remains consistently strong during periods of either high or low economic policy uncertainty. Moreover, the predictive effect of political sentiment is more pronounced for firms with high litigation risk.Research limitations/implicationsThe evidence highlights the important role of political sentiment in predicting stock crash risk. The results are consistent with the signaling hypothesis that managers tend to use their tone in conference calls to convey informative messages on firm outlooks.Practical implicationsThe study provides a recommendation on risk management: soft information such as political and non-political sentiment in earnings conference calls is useful in managing stock crash risk. The study findings also call for careful consideration of social costs, such as stock crash risk, associated with political policies. Ill-conceived policies may lead to market crashes, which can potentially outweigh the upsides of well-meaning political reforms.Originality/valueTo the authors best knowledge, this is the first study to identify the effect of time-varying firm-level political sentiment conveyed in conference calls on stock price crash.

Multimodal Evidence of Atypical Processing of Eye Gaze and Facial Emotion in Children With Autistic Traits.

According to the shared signal hypothesis (SSH) the impact of facial expressions on emotion processing partially depends on whether the gaze is directed toward or away from the observer. In autism spectrum disorder (ASD) several aspects of face processing have been found to be atypical, including attention to eye gaze and the identification of emotional expressions. However, there is little research on how gaze direction affects emotional expression processing in typically developing (TD) individuals and in those with ASD. This question is investigated here in two multimodal experiments. Experiment 1 required processing eye gaze direction while faces differed in emotional expression. Forty-seven children (aged 9–12 years) participated. Their Autism Diagnostic Observation Schedule (ADOS) scores ranged from 0 to 6 in the experiment. Event-related potentials (ERPs) were sensitive to gaze direction and emotion, but emotion processing did not depend on gaze direction. However, for angry faces the gaze direction effect on the N170 amplitude, as typically observed in TD individuals, diminished with increasing ADOS score. For neutral expressions this correlation was not significant. Experiment 2 required explicit emotion classifications in a facial emotion composite task while eye gaze was manipulated incidentally. A group of 22 children with ASD was compared to a propensity score-matched group of TD children (mean age = 13 years). The same comparison was carried out for a subgroup of nine children with ASD who were less trained in social cognition, according to clinician’s report. The ASD group performed overall worse in emotion recognition than the TD group, independently of emotion or gaze direction. However, for disgust expressions, eye tracking data revealed that TD children fixated relatively longer on the eyes of the stimulus face with a direct gaze as compared with averted gaze. In children with ASD we observed no such modulation of fixation behavior as a function of gaze direction. Overall, the present findings from ERPs and eye tracking confirm the hypothesis of an impaired sensitivity to gaze direction in children with ASD or elevated autistic traits, at least for specific emotions. Therefore, we conclude that multimodal investigations of the interaction between emotional processing and stimulus gaze direction are promising to understand the characteristics of individuals differing along the autism trait dimension.

Empirically estimating the distribution of the loudest candidate from a gravitational-wave search

Searches for gravitational-wave signals are often based on maximizing a detection statistic over a bank of waveform templates, covering a given parameter space with a variable level of correlation. Results are often evaluated using a noise-hypothesis test, where the background is characterized by the sampling distribution of the loudest template. In the context of continuous gravitational-wave searches, properly describing said distribution is an open problem: current approaches focus on a particular detection statistic and neglect template-bank correlations. We introduce a new approach using extreme value theory to describe the distribution of the loudest template's detection statistic in an arbitrary template bank. Our new proposal automatically generalizes to a wider class of detection statistics, including (but not limited to) line-robust statistics and transient continuous-wave signal hypotheses, and improves the estimation of the expected maximum detection statistic at a negligible computing cost. The performance of our proposal is demonstrated on simulated data as well as by applying it to different kinds of (transient) continuous-wave searches using O2 Advanced LIGO data. We release an accompanying python software package, distromax, implementing our new developments.

Punzi-loss:

We present the novel implementation of a non-differentiable metric approximation and a corresponding loss-scheduling aimed at the search for new particles of unknown mass in high energy physics experiments. We call the loss-scheduling, based on the minimisation of a figure-of-merit related function typical of particle physics, a Punzi-loss function, and the neural network that utilises this loss function a Punzi-net. We show that the Punzi-net outperforms standard multivariate analysis techniques and generalises well to mass hypotheses for which it was not trained. This is achieved by training a single classifier that provides a coherent and optimal classification of all signal hypotheses over the whole search space. Our result constitutes a complementary approach to fully differentiable analyses in particle physics. We implemented this work using PyTorch and provide users full access to a public repository containing all the codes and a training example.