Abstract

Cash holding due to its liquid nature, can be a strategic role in ensuring the firm's ability to Uncertainty in the market. In this research investigate the value of cash holdings in an environment with increasing intensity of competition in the product market. Therefore this basis, 159 companies listed in Tehran Stock Exchange during the period 1385 to 1392 as the sample have been analyze. The results of the data analysis show that the impact of increase in competition in the product market positively on value company's cash holdings. In other words, with increasing the intensity of product market competition, increases in cash holding by companies will lead to increased shareholder value. Also, the results show that effect of product market competition in the industry to separate the value of cash holdings and Reflects the impact of the competitive nature in product market of on surplus value created by cash holdings in six industry.