Research on the Market Competition Effect of Corporate Cash Holding: A Case Study of ANTA

International Journal of Economics and Management Studies

© 2025 by SSRG - IJEMS Journal

Volume 12 Issue 4

Year of Publication : 2025

Authors : Bingbin Dai, YiXuan Wang, Yi Suo

10.14445/23939125/IJEMS-V12I4P103

How to Cite?

Bingbin Dai, YiXuan Wang, Yi Suo, "Research on the Market Competition Effect of Corporate Cash Holding: A Case Study of ANTA," SSRG International Journal of Economics and Management Studies, vol. 12,  no. 4, pp. 19-25, 2025. Crossref, https://doi.org/10.14445/23939125/IJEMS-V12I4P103

Abstract:

Under the dual context of the rapid development of the global sports industry and the rise of domestic brands, China's sports goods industry has encountered unprecedented market opportunities. However, upgrading consumption and intensifying competition have also placed higher demands on corporate strategic resilience. Particularly after the outbreak of the COVID 19 pandemic, supply chain disruptions and demand fluctuations have further amplified corporate cash flow risks, highlighting the strategic value of cash reserves. As the leader of domestic sports brands, Anta has achieved countercyclical growth during the pandemic by holding excess cash and surpassing international brands in market share. Its case provides a typical sample for exploring the competitive effects of cash holdings. This study employs a combination of case analysis and comparative analysis, focusing on Anta's financial data and market performance and its domestic competitors (Li-Ning, Xtep, and 361 Degrees) from 2016 to 2023. By systematically organizing Anta's cash holding scale, structure, and dynamic changes through databases and company annual reports and constructing multidimensional indicators to analyze the mechanisms of its competitive effects, this research enriches the "cash is king" theory, expands the application of cash holding competitive effect theory in the sports goods industry, and fills the gap in the research of this theory in China's emerging markets. Especially in the context of the pandemic shock, it reveals the unique mechanism by which cash reserves drive market share concentration towards leading enterprises in a crisis.

Keywords:

Excess cash holdings, Competitive effects, ANTA Corporation, Sports industry.

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