Thesis (Ph.D.) - Cairo University - Faculty of Commerce - Department of Business Administration

This thesis aims to add empirical evidence to the corporate finance literature by looking at two main financing issues, namely firms' investment decision and capital structure decision, in the context of emerging markets. The thesis consists of five chapters. After an introductory chapter, the first research chapter reviews the existing literature on culture's and risk culture's influences on capital structure and investment decisions controversy with an emphasis on recent empirical work. In the second chapter we introduce the research design and methodology. In the third chapter a capital structure and investment decision models are estimated and tested on a sample of Egyptian firms using weighted Least Squares methodology and robust least squares analysis, applies panel data procedures to estimate and test a model of the determinants of capital structure and investment choices on the level of corporate characteristics and risk culture dimensions, using the entire population of non-financial quoted firms in Egypt. While the main findings of this study is on the whole consistent with the theory, there are new major insights that represent the special case of emerging markets and the critical role of risk culture. These main insights, as well as the main conclusions of the study, are summarized in Chapter 5, including some promising ideas for future research

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