Reducing Employee Turnover Intention through Corporate Governance: Examining the Role of Structured Risk Management Process, Ethical Corporate Culture, and Perceived Organisational Transparency

Mok, Reei Zhen (2025) Reducing Employee Turnover Intention through Corporate Governance: Examining the Role of Structured Risk Management Process, Ethical Corporate Culture, and Perceived Organisational Transparency. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study investigates how corporate governance mechanisms—specifically ethical corporate culture, structured risk management processes, and perceived organisational transparency—influence employee turnover intention within Malaysian organisations. Grounded in Social Exchange Theory, Job Demands-Resources Theory, and Signalling Theory, the research offers a governance-centric lens through which to understand employee retention, extending the traditional focus on individual and job-related factors. A quantitative research design was employed, involving the distribution of structured questionnaires to 285 employees working in organisations that implement corporate governance practices across various industries in Malaysia. The findings revealed that ethical corporate culture and structured risk management processes are significantly and negatively associated with turnover intention. Furthermore, perceived organisational transparency was found to mediate these relationships, underscoring its critical role in translating governance practices into employee behavioural outcomes. Theoretically, this study broadens the applicability of governance-related frameworks to employee-level dynamics, presenting a novel interdisciplinary perspective. From a practical standpoint, the findings provide actionable insights for organisational leaders as by fostering ethical leadership, promoting risk-aware environments, and enhancing transparent communication, organisations can build greater employee trust, commitment, and stability. Keywords: Ethical corporate culture; Structured risk management process; Perceived organisational transparency; Employee turnover intention; Employee retention; Corporate governance