Cross validating the consequences model of corporate governance underlying combination of stewardship and stakeholder theories

In this study, we examine the outcomes of good corporate governance underlying combination of stewardship and stakeholder theories. We develop a model that links good corporate governance, trust in top management, turnover intention, and organizational citizenship behaviors (OCBs). Good corporate governance was considered as antecedent and turnover intention and OCBs were considered as distal outcomes. Trust in top management was treated as a mediator in the model. We use a data set consisting of 303 and 156 branch managers collected in life assurance and banking business in Thailand to test the hypothesis. Results of our LISREL analyses support the proposed model. Good corporate governance was found to affect branch managersʹ trust in top management, which in turn affects the turnover intention and OCBs. These findings have practical implication for the corporate management in Thai life assurance and banking business.