When the cash holding in a company surmounts normal standard, then it can cause the investor to suspect whether the company operators use the high quota cash to premeditate corrupt actions on the firm’s finance. But the insufficient cash holding in a company, as if can hinder the company’s growth development. Therefore, this research uses the panel smooth transition regression model(PSTR) that Gonzalez, Terasvirta and Dijk (2004) developed, then we take the cash holdings as a transformation variable in the model and investigate whether there has the smooth transition threshold effect between the cash holdings and the proxy variable of the firm’s value–the market-to-book value. Whether the cash holdings will be the important transition factor for the market-to-book value. And we use the season data of 636 listed companies in Taiwan, takes the discussion on influence direction and the degree. According the result, we knew the cash holdings of all kind of industry has the smooth transition threshold effect with the market-to-book value and has two transformation threshold value respectively is 3.30% and 30.21%. Then the constitutive property change displays nearby in the threshold value, to causes it to differentiate two straight line models. And the net income, the research development expense, the interest cost and the cash dividend each independent variables nearby in the threshold value, do have the different influence truly to the market-to-book value. Again we use the data of 297 listed companies on the electronic industry, then we knew the cash holdings has the smooth transition threshold effect with the market-to-book value on the electronic industry and has one transformation threshold value is 6.92%. But the coefficient of cash dividend estimated value actually is 0. Finally aims at the estimated result of eighteen industries, and compared the model setting, transition function graph, transition rate and independent variables between all kinds of industries.