The relationship between corporate investment decision and firm performance: Moderating role of cash flows

This study examines relationship between corporate investment decision and firm performance with the moderating role of cash flows. The sample of this study is consisting of 68 nonfinancial companies and data are gathered from companies audited annual reports and business recorder websites for 2013–2017. Simple multiple regression and moderated regression analysis are used to achieve objectives of the study. The overall findings of the study show that corporate investment decisions significantly influence the performance of the company. Moreover, the results of the overall moderated regression show that cash flows significantly but negatively moderate the relationship between corporate investment decisions and performance of the company. The study results reveal that investment decisions have a greater significant effect on accounting base performance rather than market base performance.