From Boardroom to Breakroom: The Moderating Role of Middle Management Commitment in the Governance-Turnover Nexus

ABSTRACT: This study investigates the impact of corporate governance practices on employee turnover intentions of listed manufacturing companies on Ghana Stock Exchange (GSE). Using a cross-sectional explanatory research design, data were collected from 250 employees through a structured questionnaire from listed manufacturing companies on GSE. The study employed hierarchical regression and Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the hypotheses and examine interaction effects. The results reveal that board gender diversity, board independence, and board size significantly increase employee turnover intentions. However, middle-level management commitment moderates these relationships, reducing the adverse effects of these corporate governance practices. The study also finds that code of conduct alone does not significantly influence turnover, but when combined with middle management commitment, it helps mitigate turnover. This study offers new insights into the role of middle-level management commitment in moderating corporate governance effects on employee turnover, particularly within the context of an emerging market like Ghana. It contributes to the corporate governance literature by focusing on middle-level management’s role in organizational stability and employee retention.