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Effect of Net Profit Margin, Debt to Equity Ratio, Current ratio and Inflation on Dividend Payout Ratio
from Effect of Net Profit Margin, Debt to Equity Ratio, Current ratio and Inflation on Dividend Payout Ra
by The International Journal of Business Management and Technology, ISSN: 2581-3889
Table 3. Fixed Effect Panel Model Data Regression Results
Dependent Variable: DPR
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Method: Panel Least Squares
Date: 03/07/21 Time: 10:16
Sample: 2015 2018
Periods included: 4
Cross-sections included: 12
Total panel (balanced) observations: 48
Effects Specification
Cross-section fixed (dummy variables)
The Fixed Effect equation is as follows:
The coefficient of determination (R2) is used to determine what percentage of the contribution or effect of the independent variable simultaneously on the dependent variable. The coefficient also shows how much the percentage of the contribution or effect of the independent variation used in the model is able to explain the variation in the dependent variable. If it is equal to 0, then there is not the slightest contribution of influence given by the independent variable to the dependent variable. If it is equal to 1, then the percentage of the influence contribution given by the independent variable to the dependent variable is very good or perfect.
The following is a table of the results of the coefficient of determination from the results of the Random Effect model:
