Non-financial reporting as part of signalling theory

Signaling theory is interesting for describing behaviors when two sides have access to different information. In general, one party, the sender, should choose whether and how to transmit (or signal) this information, while the other party should choose how to interpret the signal. The analysis of the chemical, petrochemical and perfume industries has proven that companies post sustainable development reports as part of signaling theory, with one company signaling and publishing the report and the other adopting it.