Abstract 1. Introduction 2. Related literature and hypothesis development 3. Sample 3.1 Sample construction 3.2 Sample description 3.3 Research design 4. Empirical results 4.1 What determines firms' cash holdings? 4.2 Product market competition 4.3 Leverage, percentage of short-term debt, and asset tangibility 5. Robustness of the results 5.1 Local risk 5.2 Natural experiment in airline industries 6. Conclusions REFERENCES Appendix A. Variable definitions