Theory Versus Practice: Perspectives of Middle Eastern Financial Managers

40 Pages Posted: 2 Mar 2007 Last revised: 13 Oct 2009

See all articles by Abdelaziz Chazi

Abdelaziz Chazi

American University of Sharjah - School of Business & Management

Paulo R. S. Terra

FGV-EAESP

Fernando Zanella

United Arab Emirates University (UAEU) - Department of Economics

Date Written: March 1, 2007

Abstract

This paper reproduces a survey - previously applied in two different Continents, North America and Europe - to inquire about cost of capital, capital budgeting, capital structure, and corporate governance. The survey utilized in this article is Graham & Harvey's survey ( 2001) and its extended form employed by Brounen, Jong, and Koedijk (2004), which added two questions on corporate governance. We applied Brounen, de Jong and Koedijk extended form and we added one question on Islamic financial instruments. All firms analyzed are located in countries that abide by a mix of Islamic Law and secular Laws, mainly the French law and Common law. The sample firms were from Bahrain, Kuwait, Oman, and United Arab Emirates. Despite unique firms' characteristics and institutions, CFOs are acting roughly similar to their counter-parts in the U.S. and Europe.

Keywords: Corporate Finance, Middle East, Institutions, Survey

JEL Classification: G31, G32, G34, C42

Suggested Citation

Chazi, Abdelaziz and Terra, Paulo Renato Soares and Zanella, Fernando, Theory Versus Practice: Perspectives of Middle Eastern Financial Managers (March 1, 2007). Available at SSRN: https://ssrn.com/abstract=966701 or http://dx.doi.org/10.2139/ssrn.966701

Abdelaziz Chazi

American University of Sharjah - School of Business & Management ( email )

P.O. Box 26666
Sharjah
United Arab Emirates

Paulo Renato Soares Terra

FGV-EAESP ( email )

Rua Itapeva 474 - 8o andar
Bairro Bela Vista
São Paulo, 01332-000
Brazil
11-3799-7899 (Phone)

Fernando Zanella (Contact Author)

United Arab Emirates University (UAEU) - Department of Economics ( email )

Al-Ain
United Arab Emirates

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