This paper examines the effects of transformational leadership and of stress on students’ commitment to continue their college or university studies. Asian and Canadian students enrolled in business management program at colleges and universities in British Columbia, Canada were surveyed to gauge their perceptions as to whether transformational leadership used by faculty members and stress affect their commitment to continue studies. The results suggest that when instructors implement transformational leadership, such behavior positively affects the perceived student commitment to continue their studies. Some differences in this relationship were found between Asian students and Canadian students. The effect of transformational leadership on students’ willingness to continue their studies was found to be stronger among Asian students who were also less affected by stress. This paper offers useful empirically based insights for instructors.