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Equity incentives, company growth and product market competition

This research explores the impact of equity incentives on corporate growth in relation to product market competition. It investigates how equity incentives can enhance performance, innovation, and internal control quality. The study introduces product market competition as a variable to analyze the effectiveness of equity incentives on company growth. The hypotheses suggest that equity incentives positively influence growth, especially when using restricted stocks. The expected conclusion highlights the positive effect of equity incentives on growth, particularly with restricted stocks in competitive product markets. Companies are advised to design equity incentive conditions strategically for optimal outcomes.

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Equity incentives, company growth and product market competition

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  1. Equity incentives, company growth and product market competition 17720782 Zhao Kaijin

  2. 目录 01 The aim and meaning of the research 02 Research hypothesis 03 Expected conclusion

  3. 01 The aim and meaning of the research

  4. The aim and meaning of the research • As a way of corporate executive compensation incentives, equity incentives alleviate the agency problems of shareholders and management, and have positive significance for the company's performance, innovation ability, internal control quality, and growth. In recent years, more and more listed companies have chosen to use equity incentives.

  5. The aim and meaning of the research • On the basis of predecessors, this paper introduces product market competition as a control variable into the research of the relationship between equity incentives and corporate growth, to discuss the ability of equity incentives to enhance the company's growth in different product market competition environments.

  6. 02 Research hypothesis

  7. Research hypothesis • Hypothesis 1: Equity incentives have a positive effect on the company's growth • Hypothesis 2:Selecting restricted stocks as stocks as equity instruments for equity incentives will help to increase the company's growth.

  8. Research hypothesis • Hypothesis 3: When using restricted stock as a tool for equity incentives, the greater the market competition of products, the greater the promotion of equity incentives to the company's growth. • Hypothesis 4:When using restricted stock as a tool for equity incentives, the market competition of products is greater. After the stocks of equity incentives are exercised, the growth of the company tends to decrease.

  9. 03 Expected conclusion

  10. Expected conclusion • Equity incentives have a positive effect on the company's growth, and when the equity incentives are restricted stocks, the promotion effect is more obvious. When using restricted stock as a tool for equity incentives, the greater the market competition of products, the greater the effect of equity incentives on the growth of the company's growth, but after the stock incentives, the company's growth is more inclined.

  11. Expected conclusion • As an indicator of the company's long-term development, the company's growth indicates the company's future development capability. The application of equity incentives can improve the growth of the company, especially with restricted stocks, but for the competitive environment of different products. Companies should rationally design the exercise conditions of equity incentives according to their own circumstances, in order to achieve more favorable results.

  12. That`s all! THANK YOU FOR YOUR WATCHING

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