Research Article

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

Abdulrazaq Suleiman Ibrahim1*, Aminu Kado Kurfi2
1 Department of Business Administration, University of Maiduguri, Borno State, Nigeria.
2 Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria
* Corresponding author: abdulrazaq261@gmail.com
Published: Jun, 2024
DOI: 10.67894/bjf.2024.joewlm6j
Pages: 166-179
Views: 7
Downloads: 3

Abstract

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.

Keywords

Corporate Governance mechanism Investment Efficiency Firm Performance

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How to Cite

Ibrahim, A. S., & Kurfi, A. K. (2024). Moderating Role of Corporate Governance Mechanism on the Relationship between Investment Efficiency and Firm Performance: A Conceptual Framework. Bayero University Journal of Finance, 1(1), 166-179. https://doi.org/10.67894/bjf.2024.joewlm6j

A. S. Ibrahim, and A. K. Kurfi, "Moderating Role of Corporate Governance Mechanism on the Relationship between Investment Efficiency and Firm Performance: A Conceptual Framework," Bayero University Journal of Finance, vol. 1, no. 1, pp. 166-179, June 2024. doi: 10.67894/bjf.2024.joewlm6j

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