Abstract

This research aims to examine the primary factors influencing corporate finance and investment decisions across developed and emerging economies, exploring their interactions within distinct economic contexts to offer actionable insights for policymakers, business leaders, and investors. Employing a mixed-methods approach, the study utilises both quantitative and qualitative thematic analyses to address the research problem comprehensively. The quantitative analysis assesses macroeconomic policies and corporate finances using summary statistics, correlation, and panel regression, while the qualitative component employs word clouds and thematic charts to distil insights from interviews with financial managers and policymakers. Covering the period from 2010 to 2023, the study encompasses 500 firms—250 from developed and 250 from emerging economies—capturing the impacts of major events such as the global financial crisis, the COVID-19 pandemic, and macroeconomic shifts. Thematic analysis based on interviews with financial managers and policymakers within the quantitative sample generates qualitative data. Findings from the quantitative analysis indicate that robust corporate governance, market stability, and innovation significantly enhance financial performance and drive investment decisions in developed economies, supported by effective regulation and favourable investment climates that promote business stability and predictability. In contrast, emerging economies focus on rapid growth and industrialisation, yet continue to face challenges related to market volatility, infrastructural deficits, and governance limitations. Foreign investment, alongside technology and expertise transfer, remains essential for fostering growth in these markets. Qualitative results underscore the need for transparent and efficient business practices, facilitated by improved governance and public administration. This in-depth analysis advances the literature on corporate finance and investment decision-making in both developed and emerging economies. The findings underscore that emerging economies require prioritisation of infrastructural development, risk management, foreign investment, and governance reforms, while developed economies benefit from strong governance, market stability, innovation, and robust regulatory practices. Business leaders in developed nations are encouraged to foster innovation through R&D, technology adoption, rigorous governance, and the maintenance of market stability.