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ESOPs AND NEW PRODUCT LAUNCH: CONDITIONAL EFFECTS OF FINANCIAL SLACK AND OWNERSHIP CONCENTRATION

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  • ARPITA AGNIHOTRI

    (Penn State Harrisburg, 777 W Harrisburg Pike, Middletown, PA 17057, USA)

  • SAURABH BHATTACHARYA

    (Newcastle University Business School, 5 Barrack Rd, Newcastle Upon Tyne NE1 4SE, UK)

Abstract

Basing on risk propensity and cognitive evaluation theory, this study explores the relationship between stock options and new product launch. A study based on archival data of 273 group affiliated Indian firms for 3 years demonstrates that the rate of new product introduction is a function of stock options provided to employees. Furthermore, ownership concentration of business groups and financial slack moderate this relationship.

Suggested Citation

  • Arpita Agnihotri & Saurabh Bhattacharya, 2019. "ESOPs AND NEW PRODUCT LAUNCH: CONDITIONAL EFFECTS OF FINANCIAL SLACK AND OWNERSHIP CONCENTRATION," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-21, April.
    • Handle: RePEc:wsi:ijimxx:v:24:y:2019:i:03:n:s1363919620500218
    DOI: 10.1142/S1363919620500218
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