MODERATING EFFECT OF INVESTMENT DECISION ON THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE FIRMS FINANCIAL PERFORMANCE IN NIGERIA: FOCUS ON CONSUMER GOODS COMPANIES

Abstract

Today's corporate establishment's capital structure and investment decisions are critical to its survival. Previous studies have found mixed results when it comes to capital structure decisions and financial success. Using data from yearly audited financial statements of firms in Nigeria from 2010 to 2020, this article looked at the moderating influence of investment decisions on capital finance decisions and consumer products company financial performance. The link between the variables of 16 specified sample enterprises out of 27 populations was investigated using ex-post factor design, and inferential statistical techniques. The result of the study revealed that Total debt to total assets has a significant and positive relationship with firm performance as assessed by Tobin's q, whereas Total debt to Total equity has a negatively significant relationship with firm financial performance as evaluated by Tobin's q. Furthermore, investment decisions moderate the relation between capital financing structure and financial performance as measured by Tobin's q. The study's conclusion and recommendation are that consumer goods companies seeking to maximize sales and profits can consider making sound investment decisions and relate same to shareholders, allowing them to reach a higher amount of financial results, In addition, a decision should be made and that the regulatory authorities should promote the consumption of domestic products and Nigerian brand to support the country's infrastructural expansion.