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 highcost of living, unstable electricity supplies, high taxes, and insecurity. Enhancing corporategovernance can boost economic growth and investor protection. Nonetheless, literature has shownthat investment efficiency leads to firm performance, likewise, corporate governance (CG) hasbeen studied from the perspective of firm performance. This leads to the assertion that the CGmechanism has not been investigated from the standpoint of investment efficiency and firmperformance which is supported by the variable studies' inconsistent results. This study proposesa framework for moderating the role of the CG mechanism on the relationship between investmentefficiency and firm performance. The study used a literature review to formulate critical argumentsfor the theme that is being investigated. Therefore, the study supported the development ofpropositions with rigorous prior research. The study provides a conceptual framework for therelationships between the variables, which will help in carrying out further studies and in makingdecisions about investments made by managers of firms using the CG mechanism. The study'sconclusion lays out the theoretical foundation for the relationship between the variables.