The Study On The Enterprise Market Competition Making Influence On The Level Of Cash Holdings

The studies of cash holdings are always focused on by research scholars since the last decade of the twentieth century.It benefits the enterprises' long-term development in the product marketing by making the reasonable cash holdings.Since the World Economic Crises happened in 2008,our country also enters into the post-crisis era.Product-market competition is becoming intensive increasingly.The competition in the product market can help the enterprise to retain and seize the share to raise the enterprise's profit.The enterprise need more cash to expand business and the market in the competitive environment.So,the thought that cash is king is spreading in many enterprises.The study of cash holdings from the perspective of product market can help us to understand the roots and the intrinsic value of cash holdings.It also can provide some references in taking some reasonable policies of cash holdings and financial.We select the data in 2009-2014 from listed companies in China as the study sample.We use the theoretical analysis and empirical analysis to explore the relationship between marketing competition and level of cash holdings.Firstly,with the theoretical analysis methods,we study how the marketing competition influences cash holdings to propose some hypotheses.Meantime,we study the impact mechanism of between marketing competition and the cash holdings with different properties to propose some hypotheses.Secondly,according to the theoretical analysis,we establish some measures of the marketing competition and the cash holdings to analyze the circumstances of marketing competition and cash holdings.Finally,we construct a model of marketing competition and the cash holdings to have empirical studiesThrough empirical tests,we conclude the relationship between marketing competition and the cash holdings.The results were as follows:(1)the product market competition has been related with the cash holdings in the listed companies in our country.There is a significant and positive correlation between the product market competition and the level of cash holdings.(2)Enterprise market competition has a greater influence on the high-growth enterprises(3)Product market competition has a higher correlation with the cash holdings in the State-owned business.The paper has studied the level of cash holdings from the angle of product marketing competition.The paper fully shows the relationship between the external competitive environment and cash holdings in the internal capital market.In practice,it can help corporate credits,managers,shareholders have a proper understand of cash holdings.At the same time,it also can provide rationalization proposal for setting up cash structure and optimizing cash resource.