Abstract

Abstract. Cash money is from among the important resources of every economic entity. Maintaining the balance between cash money and cash needs is an important factor in economic health of the economic entities, as well as their continuity. Considering the importance of this issue, the present study deals with the investigation of the cash holding motives, models that justify cash holding, and factors affecting that, particularly the market share. The main objective of this study is to evaluate the relationship between market share and cash holdings in the competitive market environment of listed firms in Tehran Stock Exchange. Hence, Squibin & Van Haul's Static cash model has been used for 114 companies since 2004 to 2012. This model is analyzed by the (OLS). Regarding the purpose, this study is a basic experimental research and regarding the nature, it is a correlational one. Results of this study reveal that there is a significant negative relationship between market share and cash holdings and also showed that this relationship is of greater significance among moderately concentrated industries.

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