This study delves into the relationship between corporate governance and corporate investment, specifically examining how institutional quality and the different stages of a firm’s life cycle can influence this relationship. Utilising a panel data framework, the analysis focuses on a sample of 548 non-financial listed Indian companies over the time span from 2010–2011 to 2022–2023. An investigation into the relationship between governance and investment is conducted using a fixed-effect regression model. To ensure the reliability of the findings, additional analyses are performed on subsamples, alternative proxies for corporate governance are considered, and a two-step system generalised method of moments approach is utilised. The findings provide strong evidence of a positive correlation between corporate governance and corporate investment, with the quality of institutions further amplifying this impact. In addition, the study uncovers that the impact of governance on investment is more noticeable in the early, expansion and later phases of the company’s life cycle. This study stands out for its analysis of the relationship between governance and investment in a developing market, considering the company’s life cycle and the institutional quality.
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