Notice of RetractionThe Cash-Cash Flow Sensitivity of Chinese Firms - Findings Associated with Uncertainty and Financial Constraints

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Nowadays financial risk is observably increasing in international finance market, and real economy is also involved. Uncertainty facing a firm increases the risk of operating, which raises the probability of liquidity shortage, and firms´ financing ability is restrained by financial constraints. This paper argues that uncertainty plays an important role in cash policy; investigates the effect of financial constraints on cash-cash flow sensitivity under uncertainty; finds that the cash-cash flow sensitivity of financially constrained firms is significantly positive. However, the cash-cash flow sensitivity of financially unconstrained firms is not significant at all.