Corporate Governance, Employee Turnover, and Financial Performance

This study examined the relationships among corporate governance, employee turnover, and financial performance. Empirical results indicate that better corporate governance performance is associated with significantly lower employee turnover and that nonlinear relationships exist between employee turnover and financial performance. Furthermore, the relationships between corporate governance, employee turnover, and financial performance before and after the COVID-19 pandemic differed significantly. During the COVID-19 pandemic, corporate governance did not have a significant influence on employee turnover, but employee turnover exerted a significant and negative impact on financial performance. Employee turnover also partially mediated the relationship between corporate governance and financial performance.