Abstract: Using data of A-share listed firms in China from 2007 to 2015 as samples,combined with the firms' competition position,this paper examines the impact of firms' strategic deviance on firms' cash holdings. The research shows that:strategic deviance is positively related to firms' cash holdings level. Firms' competitive position can weaken the positively relationship. The further test shows that:the higher strategic deviance can enhance firms' financing constraints,increase firms' risk and innovation investment,thus promote firms' cash holdings level. Strategic deviance can enhance corporate cash holdings' competitive effect,but such effect will be not significantly in higher competitive position firms. This study shows that the degree of strategic deviance is one of the important influence factors of corporate cash holdings,and the research can provide reference for firms' management to make cash holding strategy and choice corporate strategy to gain competitive advantage.

Key words: strategic deviance, cash holdings, competitiveposition, competitive effect