How should we expect firms to communicate with their shareholders in the presence of uncertainty? This paper studies a model of corporate communication in which cash flow variance is priced and stochastic. The model rationalizes ``biases'' for reports that are internally consistent and confirm market priors. Managers prioritize \textit{consistency} over \textit{confirmation} when cash flows have higher variance or when the signal space is larger. Ex-ante, managers prefer larger signal spaces to smaller ones. Complementary notions of \textit{dissociation} and \textit{divergence} arise in settings with priced, stochastic covariance (e.g., one-factor SDF, multiple segments, multiple firms). The model makes several cross-sectional predictions.
coordination failures complementarities Feedback effect corporate communication signal jamming uncertainty