الفهرس 
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Abstract
Miller and Modigliani’s (1961) assumptions are viewed as not holding anymore as
investment decisions and dividend payout policies are inseparable. This thesis examines the
association between these two corporate decisions given the level of financial reporting quality.
The study covers a period of five years (2010-2014), for a final sample of 71 Egyptian non-
financial firms. Multiple regression is employed as a tool of analysis on the secondary data,
extracted from the annual financial statements of the Egyptian firms. The results indicate that
dividend policy is negatively associated with investment decisions for the whole sample.
Moreover, when splitting the sample according to the firm life cycle, unexpectedly, there is a
negative association in the subsample of firms in the declining phase compared to the well
matured firms subsample. It could be inferred that the economic and political events during the
Egyptian revolution may have an influence on the investment decisions of Egyptian firms. In
addition, it is found that fmancial reporting quality does not lessen that negative association
between the two corporate decisions, either in the whole or subsamples. The study is composed
of four chapters. The first two chapters represent the theoretical part while the empirical part is
conducted in the remaining two chapters. It is recommended that the financial reporting may
need to be more suitable to the Egyptian setting, being an emerging market, to reflect its distinct
character compared to more developed countries.