Motivated by the insufficient research in understanding the influences of the delayed changes in credit ratings, the practical importance of information asymmetry as well as the theoretical difficulty of measuring information gap with an appropriate proxy, this thesis regards delayed credit rating change (DCRC) as a source of asymmetric information and exploits whether and how it affects issuer’s capital structure adjustments. It uses Compustat North America quarterly data from 1985 to 2010 inclusive. Rating agencies often delay updating credit ratings, leading to an information gap between bond issuers and the market. This offers issuers (market insiders) opportunities to utilise the delayed credit rating changes as superior information, alongside which, factors capturing the associated benefits and costs of the rating changes and capital structure adjustments, are addressed to form the three key interactive variables in this research: DCRC, capital structure adjustments and firm performance. First considered are the effects of information asymmetry on financing adjustment before DCRCs. The evidence shows that issuers often adjust debt and equity financing at least one quarter before rating change announcements published by rating agencies. Issuers who anticipate rating upgrades in the next quarter do not significantly change the net debt issuance. Issuers who anticipate rating downgrades increase net debt issuance before rating changes. Secondly, this research is concerned with the robustness of DCRC’s effects, which is confirmed by various robustness check tests and incorporating DCRC into tests of the existing capital structure theories. The result confirms DCRC’s robust effects on firm financing adjustments. The last issue addressed is the relation between information asymmetry and gains or losses to issuers when utilising the information asymmetry. The results suggest that information asymmetry does bring material effects on firm performance. The three groups of results form a mechanism of delayed credit rating change’s real effects and reveal a fresh explanation for issuer’s financing decision making under asymmetric information.

Contrary to the long-received theory of FDI, interest rates or rates of return can motivate foreign direct investment (FDI) in concert with the benefits of direct ownership. Thus, access to investor capital and capital markets is a vital component of the multinational’s competitive market structure. Moreover, multinationals can use their superior financial capacity as a competitive advantage in exploiting FDI opportunities in dynamic markets. They can also mitigate higher levels of foreign business risks under dynamic conditions by shifting more financial risk to creditors in the host economy. Furthermore, the investor’s expectation of foreign business risk necessarily commands a risk premium for exposing their equity to foreign market risk. Multinationals can modify the profit maximization strategy of their foreign subsidiaries to maximize growth or profits to generate this risk premium. In this context, we investigate how foreign subsidiaries manage their capital funding, business risk, and profit strategies with a diverse sample of 8,000 matched parents and foreign subsidiary accounts from multiple industries in 38 countries.We find that interest rates, asset prices, and expectations in capital markets have a significant effect on the capital movements of foreign subsidiaries. We also find that foreign subsidiaries mitigate their exposure to foreign business risk by modifying their capital structure and debt maturity. Further, we show how the operating strategy of foreign subsidiaries affects their preference for growth or profit maximization. We further show that superior shareholder value, which is a vital link for access to capital for funding foreign expansion in open market economies, is achieved through maintaining stability in the rate of growth and good asset utilization.

The thesis first extends the original Black-Litterman model to dynamic asset allocation area by using the expected conditional equilibrium return and conditional covariances based on three volatility models (the DCC model, the EWMA model and the RW model) into the reverse optimisation of the utility function (the implied BL portfolio) and the maximised Sharpe ratio optimisation model (the SR-BL portfolio). The momentum portfolios are inputted as the view portfolios in the Black-Litterman model. The thesis compares performance of the dynamic implied BL portfolio and the dynamic SR-BL portfolio in the single period and multiple periods with in-sample analysis and out-of-sample analysis. The research finds that dynamic BL portfolios can beat benchmark in in-sample and out-of-sample analysis, the dynamic implied BL portfolio always show better performance than the dynamic SR-BL portfolio. The empirical VaR and CVaR of the dynamic SR-BL portfolios are much higher than that of the dynamic implied BL portfolio. The dynamic BL portfolios based on the DCC volatility model perform best in contrast to other two volatility models. In the aim of improving performance of SR-BL portfolios, the thesis further constructs dynamic BL portfolios based on two new optimisation models including maximised reward to VaR ratio optimisation model (MVaR-BL portfolios) and maximised reward to CVaR ratio optimisation model (MCVaR-BL portfolios) with assumption of the normal distribution and the t-distribution at confidence levels of 99%, 95% and 90%. The thesis compares performance of the dynamic MVaR-BL portfolio and the dynamic MCVaR-BL portfolio in the single period and multiple periods with in-sample analysis and out-of-sample analysis. There are three main findings. Firstly, both the MVaR-BL portfolio and the MCVaR-BL portfolio could improve the dynamic SR-BL portfolio performance at moderate confidence levels. Secondly, the MVaR-BL portfolio and the MCVaR-BL portfolio show similar performance with normal distribution assumption, the MCVaR-BL portfolio performs better than the MVaR-BL with t-distribution assumption at certain confidence levels in single period and multiple periods. Thirdly, the performance of the DCC-BL portfolio with t-distribution assumption is superior to the performance of the DCC-BL portfolio with normal distribution assumption. As the result of higher empirical VaR and CVaR of dynamic SR-BL portfolios, the thesis develops to constrain VaR and CVaR in construction of dynamic BL portfolios with assumption of the normal distribution and the t-distribution at confidence levels of 99%, 95% and 90%. The research studies the effect of assumptions of two distributions, three confidence levels and levels of the VaR constraint and the CVaR constraint on dynamic BL portfolios. Both in-sample performance and out-of-sample performance could be improved by imposing constraints, and they suggest adding moderate CVaR constraints to maximal Sharpe ratio optimisation model with t-distribution at certain confidence level could obtain the best dynamic DCC-BL portfolio performance in the single period and multiple periods. The performance evaluation criterion (higher Sharpe ratio, reward to VaR ratio, and reward to CVaR ratio) would affect the choice of optimisation models in dynamic asset allocation.

The purpose of this thesis is to explore the interaction between people’s financial behaviour and the market’s fractal characteristics. In particular, I have been interested in the Hurst exponent, a measure of a series’ fractal dimension and autocorrelation. In Chapter 2 I show that people exhibit a high level of sensitivity to the Hurst exponent of visually presented graphs representing price series. I explain this sensitivity using two types of cues: the illuminance of the graphs, and the characteristic of the price change series. I further show that people can learn how to identify the Hurst exponents of fractal graphs when feedback about the correct values of the Hurst exponent is given. In Chapter 3 I investigate the relationship between risk perception and Hurst exponent. I show that people assess risk of investment in an asset according to the Hurst exponent of its price graph if it is presented along with its price change series. Analysis reveals that buy/sell decisions also depend on the Hurst exponent of the graphs. In Chapter 4 I study forecasts from financial graphs. I show that to produce forecasts, people imitate perceived noise and signals of data series. People’s forecasts depend on certain personality traits and dispositions. Similar results were obtained for experts. In Chapter 5 I explore the way people integrate visually presented price series with news. I find that people’s financial decisions are influenced by news more than the average trend of the graphs. In the case of positive trend, there is a correlation between financial forecasts and decisions. Finally, in Chapter 6 I show that the way people perceive fractal time series is correlated with the Hurst exponent of the graphs. I use the findings of the thesis to describe a possible mechanism which preserves the fractal nature of price series.

Income Taxation is new in Egypt. The introduction of income taxation in 1939 was aimed at achieving two basic objectives; first, to raise revenue to meet the steady increase in public expenditures, and secondly, to establish an element of equity in the tax system, where indirect taxation, which is regressive in nature, predominates. The main object of this study is to analyse the competence of the income tax system in attaining these objectives.

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The thesis is divided into three parts. Following the introduction, Part I deals with the character of international double taxation, how it occurs, taxation principles and historical developments. There follows a review of the various methods of preventing international double taxation under three categories - unilaterally, bilaterally and multilaterally. Also, information about double taxation agreements is provided including definitions, functions, types, historical background with the role of international organisations and interpretation. Part II of the thesis includes four chapters, one for each sample country, dealing with their national systems in the field of international transportation with related legislation and cases. Part III, under the heading of international transportation income deals with the problems of international transportation, within the context of two common double taxation Models, the OECD and the United Nations Model, as well as the United States Model. Furthermore, the positions regarding the four sample countries - Canada, Turkey, the United Kingdom and the United States - with double taxation agreements concerning international transportation are examined in the light of the OECD, the United Nations and the United States Model. After a comprehensive examination of some important topics related with international transportation including the concept of "having a trade or business", the determination of residence for international transportation companies, the concept of the term "permanent establishment", the allocation of international transportation income between different jurisdictions, reciprocal exemption of international transportation income between countries and the difficulties arising from flags of convenience, an attempt is made to offer possible solutions.

Recent research in financial economics has suggested that models incorporating agents whose expectations are not fully rational may help us to understand and explain financial market behaviour. Using a noise trader framework this thesis presents a theoretical appraisal of the robustness of such irrational beliefs and the prescriptions of noise trader models. In contrast to previous work we show that the effects of noise trading are not a short-term phenomena. As agent's horizons increase, noise trader induced risk becomes more important particularly if their beliefs are persistent. Various proposed policy measures to reduce speculative behaviour are considered. We demonstrate that noise trading is robust to the imposition of both linear and non-linear transaction taxes, but could be reduced by direct market intervention. A new mixed policy of tax financed intervention is shown to reduce the destabilising effects of noise traders. We also consider models in which all agents are endowed with adaptive learning rules. Conditions for convergence of the adaptive model to the rational expectations solution and expectational stability are derived. An evolutionary version of the model is investigated through computer experiments. Asset prices converge to an neighbourhood of the rational expectations equilibrium but exhibit exaggerated movements consistent with empirical evidence. The experimental evidence accords with the analytical results on the robustness of noise trader beliefs and their effects, but suggests that noise traders will not come to dominate the market.

Service quality management is an important organizational factor, through which organizations differentiate themselves, compete, and take the lead in the marketplace. It is even more challenging for banks and financial services which, by and large, offer products and services that are difficult for customers to differentiate. Improvements in service quality are expected to increase customer satisfaction, which, in turn, will increase the banks’ ability to retain their customers, broaden their market share, and increase profitability. This study, hence, is an attempt to measure the perceived service quality of three Islamic banks in Kuwait; Kuwait Finance House, Kuwait International Bank, and Boubyan Bank. Additional dimensions are added to the service quality model (SERVQUAL) to measure the perceived service quality and the customers’ perceptions. Dimensions such as; Shari’ah compliancy, the competitiveness between Islamic banks in Kuwait, the technology factors, and the general customer satisfaction were incorporated to the respective model. The study aims to identify those dimensions that influence the level of customers’ perceptions in the sampled banks, examine the effect of service quality on customer satisfaction and assess the correlation between the Islamic banking variables and the SERQUAL dimensions. To attain these aims the study utilized a sample of 700 responses across the three Islamic banks. The study findings demonstrate an above-average level of satisfaction among the Islamic banks’ customers. ‘Compliance’, ‘empathy’, and ‘assurance’ were the most important dimensions as perceived by the Islamic banks customers in Kuwait. The results showed a significant relationship between customer satisfaction and some of the modified SERVQUAL dimensions namely; ‘empathy’, ‘assurance’, ‘compliance’, and ‘competitiveness’. The study also found that demographic factors have significant effect on the perceptions of service quality in Kuwaiti Islamic banks. Based on these results and findings, it could be concluded that in Kuwaiti Islamic banks customers are satisfied with the quality of services depending on their bank being Shari’ah-compliant and assured to deliver the promised services, employees being considerate and understanding, and finally being competitive by offering the best service with competitive charges. The study also confirmed that the avoidance of interest and other religious motives are the most important reasons why customers prefer to patronize the Islamic banks in Kuwait in general. However, when testing each bank individually, differences accrued in ranking the religious factor and being compliant with Islamic Shari’ah principles. The results are expected to provide both theoretical and practical contributions in the area of service quality management and customer behavior in Islamic banking. The overall findings are important for service quality managers to identify efficient and effective approaches for improving quality in their banks.

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