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.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Strategy and Management
- Management of Technology and Innovation