A key criterion for evaluating the degree of success of industries and enterprises in competitive fields is competition in the product market. In a competitive environment, organization is trying to keep more cash in order to create its competitive advantage. On the other hand, increased competition stimulates companies to create competitive advantages in price, cost or product differentiation through innovation. In addition, more resources are directed towards companies in concentrated industries. Therefore, companies with financial constraints and more innovation keep more cash in order to maintain their position in a competitive environment. But in the absence of appropriate scientific and experimental evidence, the present research examines the effect of market competition on the company's cash retention: an analysis of the company's innovation and financial constraints. In this regard, a sample consisting of 125 companies admitted to the stock exchange during the period of 2015-2022 was selected and tested. The results show that the competition in the product market leads to an increase in the company's cash retention, and the financial constraint leads to the intensification of the relationship between the competition in the product market and the company's cash retention. However, innovation is not able to change the relationship between product market competition and cash retention.