Table 5

Multiple regression statistics for incremental information content of various traditional performance measures

Independent variablesModel 7VIFModel 8VIF
PAT−0.390 (−12.376)2.589−0.597 (−17.302)2.352
EPS0.251 (13.259)3.1080.228 (12.116)2.135
ROA−0.197 (−3.356)3.425−0.168 (−2.880)1.987
ROE0.467 (12.693)4.3650.546 (14.814)1.568
ROI0.150 (2.688)4.5520.168 (3.043)2.223
EVA 0.216 (14.018)2.568
R20.559 0.568 
Adjusted R20.532 0.542 
F-statistics21.334 22.12 
% change in R2 0.90% 
Hausman’s test298.528 (0.000) 250.478 (0.000) 
Breusch–Pagan–Godfrey (BPG) test5.556 (0.352) 7.275 (0.296) 
Durbin–Watson1.507 1.526 

Note(s): Significant at 5% level; PAT: profit after tax; EPS: earnings per share; ROA: return on assets; ROE: return on equity; ROI: return on investment; EVA: economic value added and VIF: variance inflation factor

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