Excess Cash Holdings and Product-Market Competitive Advantage:Evidence from the Chinese Listed Companies
研究中国上市公司超额现金持有对产品市场竞争优势的影响，发现两者呈倒U型关系，且国企的超额现金持有水平较低，对竞争优势产生负面净效应。
The existing researches on the motivation and economic consequences of cash holdings have paid little attention to the strategic effect of cash holdings.Based on the corporate strategies economics theory,this paper examines the effect of firm's excess cash holdings on product - market competitive advantage.Our study provides new empirical evidence about the association between financial decisions and product - market competition strategies.We find that excess cash holdings have strategic effect and a significant reverse U - shaped relation exists between excess cash holding and product - market competitive advantage.Moreover,our conclusions show that,compared with private enterprises,lower excess cash holdings of state - owned enterprises result in negative net effect on product - market competitive advantage.