The Effect of Mayor's Quality and Municipal Size on Financial Condition in Metropolitan Municipalities: A Case of South Africa

Abstract

This study aims to explore the impact of the mayoral quality and the municipal population size on the financial conditions of the metropolitan municipalities. The case study method was followed to explore eight cases of South African metropolitan municipalities. The quality of the mayor is represented by the mayor's age, educational background, experience, race, and political affiliation, whilst the financial condition is represented by the property tax, service tax and total expenditure per municipality. The last local government elections took place in 2016, the five years of the local government administration will be analysed. Thus, the data is from a South African metropolitan municipality and refers to 2015/16 to 2019/20 financial years. The study findings indicate that the mayor's quality does not significantly impact the financial conditions of the municipalities. Most of the mayoral qualities within the eight municipalities have similar characteristics but have different financial performance conditions. Although the study also found that the municipality's population size does impact the financial conditions of the municipality as municipalities with a large population have the highest financial performance management index. The findings from this study will add value to literature in performance management and use to the regulators and policymakers, the local government, as they justify efforts to appoint suitable mayors and improve the entities' financial conditions. The study will also contribute to the new administration of the local government since there will be local government elections in November 2021.