Model Summary (VEQ, EPS & BVPS)
Table 8a: Model Summary (VEQ, EPS & BVPS)
Dependent Variable: Value of Equity (VEQ)
Observation included: 1050
Variable Coefficient Std. Error t-Statistic Prob.
C 20.505 3.132 6.547 0.000
Earnings per Share (EPS) 0.279 0.017 16.606 0.000
Book Value per Share(BVPS) -0.011 0.032 -0.336 0.737
R-squared 0.209 Mean dependent var 39.9561
Adjusted R-squared 0.207 S.D. dependent var 47.82308
S.E. of regression 93.15136 Sum squared resid 8677.176
F-statistic 138.243 Df 2/1047 Source: SPSS Output, 2015: Durbin Watson (Dw) = 1.915
Table 8a presents the model summary for Value of Equity (VEQ), Earnings per Share (EPS) and Book Value per Share (BVPS) for the 1050 observations. It was observed that R2 is 0.209 which suggests a 20.9% …show more content…
In addition, a negative sign is attached to BVPS which implies that BVPS negatively affected the VEQ. However, the f-ratio is used to measure the joint significance of all the explanatory variables of the model used. The f-statistics is .000 which is highly significant. The f-calculated (101.214) is greater than the f-tabulated (2.9957) which implies that there is a relationship between earnings per share, book value per share global financial crisis and value of equity. In addition, the Durbin Watson (Dw) statistics of 1.955 suggests the absence of serial correlation of the residuals in the model.
Table 8c: Model Summary (VEQ, EPS, BVPS, IFRSDUM)
Dependent Variable: Value of Equity (VEQ)
Observation included: 1050
Variable Coefficient Std. Error t-Statistic Prob.
C 8.560 3.834 2.233 .026
Earnings per Share (EPS) .276 .017 16.632 .000
Book Value per Share(BVPS) -.013 .032 -.401 .688
IFRS (IFRSDUM) 30.751 5.811 5.292 .000
R-squared .230 Mean dependent var 39.9899
Adjusted R-squared .227 S.D. dependent var 50.15153
S.E. of regression 92.01078 Sum squared resid 8465.984
F-statistic 103.784 Df 3/1045 Source: SPSS Output, 2015: Durbin Watson (Dw) = …show more content…
The results revealed that R2 is .230 which suggests a 23.0% explanatory ability of the estimation for the systematic variations in the dependent variable with an adjusted value of .230(23.0%). The unexplained variation is 77.0% (1-.230). The results showed that EPS is statistically significant at 5% level in explaining VEQ. It can be seen that EPS has a larger and beta coefficient (.276) and it is carrying the right sign (+) in absolute terms than BVPS. The beta coefficient suggests that a unit change in EPS will result to approximately 27.6 kobo change in VEQ. It thus follows that 1 kobo change in EPS will result to approximately 27.6 kobo change in VEQ inspite of the mandatory adoption of the international financial reporting standards. The Book Value per Share (BVPS) beta coefficient -.013 implies that BVPS is not significant. The reasons for BVPS not significant may be due to the fact that Value of Equity (VEQ) does not truly mirror the actual situation of the firms and possibly investors do
Dependent Variable: Value of Equity (VEQ)
Observation included: 1050
Variable Coefficient Std. Error t-Statistic Prob.
C 20.505 3.132 6.547 0.000
Earnings per Share (EPS) 0.279 0.017 16.606 0.000
Book Value per Share(BVPS) -0.011 0.032 -0.336 0.737
R-squared 0.209 Mean dependent var 39.9561
Adjusted R-squared 0.207 S.D. dependent var 47.82308
S.E. of regression 93.15136 Sum squared resid 8677.176
F-statistic 138.243 Df 2/1047 Source: SPSS Output, 2015: Durbin Watson (Dw) = 1.915
Table 8a presents the model summary for Value of Equity (VEQ), Earnings per Share (EPS) and Book Value per Share (BVPS) for the 1050 observations. It was observed that R2 is 0.209 which suggests a 20.9% …show more content…
In addition, a negative sign is attached to BVPS which implies that BVPS negatively affected the VEQ. However, the f-ratio is used to measure the joint significance of all the explanatory variables of the model used. The f-statistics is .000 which is highly significant. The f-calculated (101.214) is greater than the f-tabulated (2.9957) which implies that there is a relationship between earnings per share, book value per share global financial crisis and value of equity. In addition, the Durbin Watson (Dw) statistics of 1.955 suggests the absence of serial correlation of the residuals in the model.
Table 8c: Model Summary (VEQ, EPS, BVPS, IFRSDUM)
Dependent Variable: Value of Equity (VEQ)
Observation included: 1050
Variable Coefficient Std. Error t-Statistic Prob.
C 8.560 3.834 2.233 .026
Earnings per Share (EPS) .276 .017 16.632 .000
Book Value per Share(BVPS) -.013 .032 -.401 .688
IFRS (IFRSDUM) 30.751 5.811 5.292 .000
R-squared .230 Mean dependent var 39.9899
Adjusted R-squared .227 S.D. dependent var 50.15153
S.E. of regression 92.01078 Sum squared resid 8465.984
F-statistic 103.784 Df 3/1045 Source: SPSS Output, 2015: Durbin Watson (Dw) = …show more content…
The results revealed that R2 is .230 which suggests a 23.0% explanatory ability of the estimation for the systematic variations in the dependent variable with an adjusted value of .230(23.0%). The unexplained variation is 77.0% (1-.230). The results showed that EPS is statistically significant at 5% level in explaining VEQ. It can be seen that EPS has a larger and beta coefficient (.276) and it is carrying the right sign (+) in absolute terms than BVPS. The beta coefficient suggests that a unit change in EPS will result to approximately 27.6 kobo change in VEQ. It thus follows that 1 kobo change in EPS will result to approximately 27.6 kobo change in VEQ inspite of the mandatory adoption of the international financial reporting standards. The Book Value per Share (BVPS) beta coefficient -.013 implies that BVPS is not significant. The reasons for BVPS not significant may be due to the fact that Value of Equity (VEQ) does not truly mirror the actual situation of the firms and possibly investors do