Elections, Political Connections and Cash Holdings: Evidence from Local Assemblies

We examine the relationship between elections, political connections, and cash holdings in Ghanaian local assemblies. Using a panel dataset of 179local assemblies over period 2012 to 2017, regression generalized method moments estimation techniques was employed for analysis. find that hold less during election years, which suggests may be one potential factors mitigate agency conflict weak governance environment. Further, we demonstrate have connections cash; however, uncertainty makes these entities conducive problems than their non-connected peers because they more cash. Additional analysis indicates year prior managerial conservatism kicks-in leads managers continues becomes pronounced years. Our results implications regulations on management practices