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http://dx.doi.org/10.13106/jafeb.2022.vol9.no2.0261

The Impact of Ethical Leadership on Employees Turnover Intention: An Empirical Study of the Banking Sector in Malaysia  

SALEH, Tajneen Affnaan (Faculty of Management, Multimedia University)
MEHMOOD, Wajid (Department of Management Sciences, NCS University System, Qurtuba University of Science and Information Technology)
KHAN, Jehanzeb (Rana University, Qurtuba University of Science and Information Technology)
JAN, Farman Ullah (Government College of Management Sciences Charsadda KP, Qurtuba University of Science and Information Technology)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.2, 2022 , pp. 261-272 More about this Journal
Abstract
The purpose of this paper is to investigate the influence of ethical leadership in determining the organizations' individual-type ethical climate (self-interest, friendship, and personal morality ethical climate) in reducing employee turnover intention. It seeks to identify the role of individual-type climate in mediating the association between ethical leadership and employee turnover intention. Moreover, the moderation effect of emotional exhaustion among employees on the relationship between ethical leadership and turnover intention has been researched to establish the ethical degree of leadership. Using a sample of 260 questionnaires from employees working full-time in the banking sector, the results were analyzed in PLS-SEM. The results of the social exchange theory indicated that ethical leadership is vital in shaping the workplace's individual-type ethical climate and reducing employees' turnover intention. The findings demonstrate that the relationship between ethical leadership and turnover intention is mediated by an individual-type ethical climate, which means that employees in a positive ethical climate do not wish to leave immediately. Furthermore, emotional exhaustion was found to moderate the association between ethical leadership and employees' turnover intention under high emotional exhaustion, where low ethical leadership is experienced, reporting higher levels of turnover intention.
Keywords
Ethical Leadership; Ethical Climate; Employee Emotional Exhaustion; Employee Turnover Intention;
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Times Cited By KSCI : 6  (Citation Analysis)
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