Chief Executive Officer Political Connection and Firms' Investment Horizon: Evidence from Tunisian Firms

Background and Objective: The impact of political relationships on corporate behavior is very important for an organisation. Hence, the objective of this paper was to examine the impact of political connections on investment decisions, specifically the investment horizon of Tunisian firms. Materials and Methods: During the period 2015-2020, this research was conducted with 27 Tunisian listed firms. The methodology used for this work was a positive approach built on a hypothetical-deductive methodology. After reviewing the current theory, some hypotheses were developed and submitted to empirical tests. Binary logistic regression on the different variables was chosen to explain the impact of the political connection on the investment horizon. Results: The politically connected Tunisian companies have a positive and significant impact on the investment horizon and encourage long-term investment. This relationship was confirmed during this period, which was marked by serious events such as the health crisis and political unrest. Conclusion: The political entities on which this study is based belonged to the former regime, its allies and close associates. The loss of the advantages obtained under the old regime is therefore obvious. For companies, turning to long-term investments is the best way to benefit from the future and to have sustainability.