ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .653 4 .163 2.059 .101a

Residual 3.805 48 .079

Total 4.458 52

a. Predictors: (Constant), LC, DEBT, TANG, EXT

b. Dependent Variable: DPR

To measure the model fit I interpret the ANOVA table first. ANOVA table explained the deviation
in the dependent variable. In this table If Sig < .01, then the model is significant at 99%, if Sig
< .05, then the model is significant at 95%, and if Sig <.1, the model is significant at 90%.
Significance implies that we can accept the model. If Sig>.,1 then the model was not significant
(a relationship could not be found) or "R-square is not significantly different from zero." In my
case significance of model is .017, which is less that .05 but greater than .01. it means that model
is significant at 95%. The results show the significant relationship of dependent variable and
independent variable.

In the ANOVA table the TSS (Total Sum of Squares) is the total deviations in the dependent
variable. The aim of the regression is to explain these deviations. In my result TSS is 161.88.
The ESS (Explained Sum of Squares) is the amount of the TSS that could be explained by the
model. In my results the ESS is 35.261. The RSS is the amount that could not be explained (TSS
minus ESS). In my results RSS is 126.627.
 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .383a .146 .075 .2815687

a. Predictors: (Constant), LC, DEBT, TANG, EXT

Adjusted R-square
Adjusted R-square Measures the proportion of the variance in the dependent variable
(DIVIDEND PAYOUT RATIO) that is explained by variations in the independent variables. In
this table the “Adjusted R-Square” shows that 15.3% of the variance is explained.

R-square
The R-square is the ratio of ESS/TSS. It captures the percent of deviation from the mean in the
dependent variable that could be explained by the model. In my result R square is .218, which
means that 21.8 % of deviation from the mean in the dependent variable is explained by the
model.
 Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .106 .376 .281 .780

TANG .280 .269 .158 1.041 .303

DEBT .348 .350 .148 .994 .325

EXT -.056 .277 -.034 -.201 .841

LC -.891 .420 -.344 -2.119 .039

a. Dependent Variable: DPR

The table “Coefficients” provides information on the confidence with which we can support the
estimate for each such estimate. If the value in “Sig.” is less than 0.05, then we can assume that
the estimate in column “B” can be asserted as true with a 95% level of confidence. So I interpret
the "Sig" value first. If this value is more than 0 .1 then the coefficient estimate is not reliable
because it has "too" much dispersion/variance. In my results the independent variable debt
maturity and life cycle with values .006 and .036 respectively, are statistically significant. But the
other two variables tangibility and external financing are not significant.