| Summary: | 碩士 === 國立成功大學 === 財務金融研究所 === 102 === This paper examines that the argument that cash holdings (financial strength) influence a firm’s (as well as its rivals) competitive actions and competitive outcomes in product market by using Taiwan sample. I investigate that the impact of cash reserves on product market performance via three aspects including market share growth, firm value, and operating efficiency. The evidences show that firms with large cash have higher market performance and this effect is stronger if electronics manufacturing firms. Furthermore, the result indicates that firms holdings much more cash outperform their poor rivals during market downturns. On the whole, the outcomes point out that cash policy has a strategic status and also plays a substantial role in day-to-day operation.
|
|---|
