The Impact of Internal Accounting Information Quality and Product market competition on Cash Holdings, and the Role of Firm Diversification: An Applied Study

This study aims to test and analyze the impact of Firm Diversification on the relationship between Internal Accounting Information Quality and Cash Holdings, in addition to testing and analyzing the impact of Firm Diversification on the relationship between Product market competition and Cash Holdings of companies listed in the index EGX 70 on the Egyptian Stock Exchange.  
The study found that the type of competition between companies in the Egyptian environment is monopolistic competition, in addition to that the Internal Accounting Information Quality  and Product market competition significantly affects Cash Holdings,  Besides, the study found that Firm Diversification significantly affects the relationship between Internal Accounting Information Quality and Cash Holdings , while Firm Diversification does not significantly affect the relationship between Product market competition and Cash Holdings.
The study recommended the necessity of improving Internal Accounting Information Quality because it helps companies make more efficient decisions to keep cash. Besides, the Egyptian Competition Authority, established in accordance with the provisions of Law No. 3 of 2005, should exercise its role in taking the necessary procedures against harmful practices to competition, because of their impact on the levels of Cash Holdings of companies.