Accounting and Auditing Research

Accounting and Auditing Research

Effect of Competition Risk in Product Market on Cash Holding Level in Firms Having Constraints in Financing and Investment Opportunities

Document Type : Original Article

Authors
Zahra Pourzamani
Arameh Soleiman khan
10.22034/iaar.2015.103799
Abstract
Cash resources are regarded as a threat recognition channel of an economic unit considering competition risk in product market and constraint in financing which can be different due to investment decisions in current competitive world. Accordingly, the present research is going to study the effect of competition risk in product market on cash holding level in firms having constraints in financing and investment opportunities. In this research 117 companies enlisted in Tehran Stock Exchange have been investigated for the time period between 2008 and 2012. To test hypotheses we have used a linear regression model. Research findings showed that on the whole competition risk in product market has had a negative effect on holding level. Also this result can be applied to firms having financing and investment opportunity constraints.
Keywords
Competition Risk
Product Market
Cash Holding Level
Financing Constraints
Investment Opportunity Constraints
Accounting and Auditing Research
Volume 7, Issue 27
Autumn 2015
Pages 98-81