This paper investigates the relationship between excess cash holdings, product market competition and corporate innovation by using an empirical research method with a sample of A-share manufacturing companies listed in Shanghai and Shenzhen in China from 2011 to 2021. The study finds that: manufacturing companies’ excess cash holdings have a positive impact on corporate innovation; product market competition positively regulates the relationship between excess cash holdings and corporate innovation, and the more intense the product market competition is, the more significant the regulating effect is. The research in this paper provides a reference for manufacturing firms to optimize corporate cash holdings and promote corporate innovation in different competitive market environments.
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