公司編製合併報表時，母公司與其具控制力之子公司間的銷貨交易應全數銷除。此被銷除關係人銷貨交易並不影響公司當期盈餘報導，然可視為 公司的效率契約安排，有助於降低公司現金流量波動性。本研究檢測此被銷除關係人銷貨交易與現金持有水準之關聯性，且探討機構投資者持股率在前述關係所扮演的角色。實證結果顯示：上市櫃公司被銷除關係人銷貨交易與現金持有水準呈現負向關係，意味公司管理者在從事效率契約關係人銷貨安排後，顯著降低預防性現金持有部位。然機構投資者持股率愈高，被銷除關係人銷貨交易與現金持有水準之負向關係，某種程度會受到抑制。

When preparing consolidated financial statements, a listed firm must eliminate all related party sales between the reporting entity (parent company) and its controlled subsidiaries (i.e., ERPT) in the consolidated financial statements. The ERPT does not affect current earnings reporting and can be attributed to an efficient contracting that helps reduce the volatility of the firm’s cash flows. This study thus examines the impact of ERPT on listed firms’ cash holding decisions and further explores the role of institutional ownership in the above aforementioned relationship. Empirical result shows that ERPT is negatively associated with the firm’s cash holding, indicating that managers significantly reduce the precautionary cash positions through efficient related-party sales arrangements. Further analysis documents that, in most cases, this negative relationship is suppressed by higher levels of institutional ownership. This study runs several diagnostic checks, the results confirm the robustness of the main findings.