Moderating Role of Corporate Governance Mechanism on the Relationship between Investment Efficiency and Firm Performance: A Conceptual Framework

Firm performance studies reveal investment efficiency declines in Nigeria, possibly due to high cost of living, unstable electricity supplies, high taxes, and insecurity. Enhancing corporate governance can boost economic growth and investor protection. Nonetheless, literature has shown that investment efficiency leads to firm performance, likewise, corporate governance (CG) has been studied from the perspective of firm performance. This leads to the assertion that the CG mechanism has not been investigated from the standpoint of investment efficiency and firm performance which is supported by the variable studies' inconsistent results. This study proposes a framework for moderating the role of the CG mechanism on the relationship between investment efficiency and firm performance. The study used a literature review to formulate critical arguments for the theme that is being investigated. Therefore, the study supported the development of propositions with rigorous prior research. The study provides a conceptual framework for the relationships between the variables, which will help in carrying out further studies and in making decisions about investments made by managers of firms using the CG mechanism. The study's conclusion lays out the theoretical foundation for the relationship between the variables.