Equity incentive characteristics, industry life cycle and corporate innovation

Lanlan Mei, Tengyin Hu, Zhouheng Mao and Zehao Wang

Finance Research Letters, 2023, vol. 58, issue PC

Abstract: Taking the industry life cycle as a perspective, this paper selects A-share listed companies in Shanghai and Shenzhen from 2016 to 2022 as a sample to explore the impact of listed companies' equity incentive characteristics on the level of corporate innovation. It is found that: incentive characteristics have a significant impact on corporate innovation investment, and stock options promote R&D investment more obviously than restricted stocks; stock options promote corporate innovation investment level only in growing and mature industries; in the mature period of the industry, equity incentives of growing companies have a positive role in promoting innovation investment.

Keywords: Equity incentives; Corporate innovation; Industry cycle (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323009285

DOI: 10.1016/j.frl.2023.104556

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