The effect of employee perception of management cheap talk on ethical climate and turnover intent: Evidence from store and employee-level analyses
Baik, Young Il
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https://hdl.handle.net/2142/124639
Description
Title
The effect of employee perception of management cheap talk on ethical climate and turnover intent: Evidence from store and employee-level analyses
Author(s)
Baik, Young Il
Issue Date
2024-04-08
Director of Research (if dissertation) or Advisor (if thesis)
Chen, Clara
Du, Fei
Doctoral Committee Chair(s)
Chen, Clara
Du, Fei
Committee Member(s)
Godsell, David
Brown, Nerissa
Leiby, Justin
Almeida, Heitor
Department of Study
Accountancy
Discipline
Accountancy
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Employees
Culture
Language
eng
Abstract
This study investigates the impact of employee perceptions of management cheap talk on ethical climate and turnover intent within the context of diversity. I define diversity cheap talk as the discrepancy between management’s communication and actual workplace practices. Drawing on the Leader-Member Exchange (LMX) theory and utilizing both store-level and employee-level longitudinal analysis, I find that diversity cheap talk negatively influences the ethical climate and increases turnover intent. To address endogeneity concerns, I employ a cross-lagged variable test and exploit hate crime occurrences near employee residences. The adverse effects of diversity cheap talk on ethical climate and turnover intent are more pronounced in stores with employees who have a heightened interest in diversity and have undergone formal diversity training, and less pronounced in stores with diversity-aligned hiring practices. Furthermore, store-level analyses suggest an increase in employee turnover following diversity cheap talk, while employee-level tests suggest that exposure to discrimination and lack of management remedial action may be a potential mechanism for identifying diversity cheap talk.
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