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Title page

Contents

Abstract 3

1. Introduction 4

2. Background 8

3. Data and Empirical Strategy 13

4. Results 20

4.1. Decriptive statistics 20

4.2. Analysis 21

5. Discussion 27

6. Conclusion 31

References 33

Online Appendix 37

A. Additional Tables and Figures 37

B. Robustness 45

C. Description of Variables and their Sources 60

References 65

Tables

Table 1. Summary Statistics for Branches, Managers, and Employees 18

Table 2. Individual Performance and Transformational Leadership 22

Table 3. Work Styles and Transformational Leadership 25

Table 4. Mental Well-Being and Transformational Leadership 27

Figures

Figure 1. Performance Trends: Observed Means (October 2019-January 2021) 21

Figure 2. Mental Well-Being in June and July 2020 by Transformational Leadership 26

Appendix Tables

Table A.1. Balance Check - Analysis Sample 37

Table A.2. Correlation between Employees, Branches, and Managers 38

Table A.3. Correlation among Leadership Components 38

Table A.4. Balance Check - Leadership Components 39

Table A.5. Suggestive Mechanisms 44

Table B.1. Individual Performance and Transformational Leadership 46

Table B.2. Individual Performance and Transformational Leadership 47

Table B.3. Work Styles and Transformational Leadership 48

Table B.4. Mental Well-Being and Transformational Leadership 49

Table B.5. Leadership Ratings before and during the Covid-19 pandemic 51

Table B.6. Individual Performance and Transformational Leadership 52

Table B.7. Work Styles and Transformational Leadership 53

Table B.8. Mental Well-Being and Transformational Leadership 53

Table B.9. Survey Attrition and Turnover by Transformational Leadership 55

Table B.10. Individual Performance and Transformational Leadership 57

Table B.11. Work Styles and Transformational Leadership 58

Table B.12. Mental Well-Being and Transformational Leadership 58

Table B.13. Individual Performance and Transformational Leadership 59

Appendix Figures

Figure A.1. Monthly Bonus from October 2019 to January 2021 40

Figure A.2. Attrition and Response Rates 41

Figure A.3. Distribution of Transformational Leadership Scores 42

Figure A.4. Linear-trends Model: Performance Indicators (October 2019-January 2021) 43