authors
Joshua Benson Nadiyasu

abstract
This study concerns with how political connections affect firm performance. Extant literature in the subject presented mixed and inconclusive findings. The aim of the study was two fold: to examine the effect of political connections on firm performance and to find out whether or not different types of political connections affect firm performance differently. Fifty (50) firms listed on Johannesburg Stock Exchange (JSE) were used as the sample size of the study based on a study period from 2012 to 2018. A dynamic regression using the GMM estimation technique was used to test the relationship. The results indicate that in general, political connections positively affect firm performance, but not all types of such connections affect firm performance. It was recommended that political connections should be discouraged in non government linked companies because of the instability of such types of connections. Government linked companies on the other hand, should explore other types of political connections in order to enhance performance.