No abstract

The paper's main aim was to determine the moderating effect of chief executive officer (CEO) power on the relationship between board capital and investment efficiency of listed firms in the Nairobi Securities Exchange. The study adopted a longitudinal, and 10 years of panel data was obtained using documentary analysis from audited financial statements of 33 listed firms consistently trading in the Nairobi Securities Exchange between 2012 and 2021. The hierarchical Fixed model was used to test the moderating effect. Results revealed that board financial expertise and interlock positively affected the investment efficiency of listed firms. The effect of board interlock on investment efficiency is more profound for firms with powerful CEO. However, CEO power did not moderate the relationship between the board's financial expertise on the investment efficiency of listed firms. The study was limited to firms listed in the Nairobi securities exchange. However, future research should be replicated beyond East Africa. Again, this study utilizes CEO power as a moderator, and other studies should consider other variables.