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Figure 4.8 Source: Secondary Data Output From SPSS 18
From figure 4.3 shown that there is no clear pattern, as well as the dots spread above and below zero 0 on the Y axis. So it can be concluded that
there is no heterocedastisity.
3. Coefficient of Determination R
2
Coefficient of determination used in this study to see the influence of the independent variable board of director, board of independent, managerial
ownership and institutional ownership of the dependent variable return on assets. Value of the correlation coefficient R shows how much correlation
or relationship between the independent variables with the dependent variable.
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Table 4.9 Coefficient Determination
Source: Secondary Data Output From SPSS 18 Table 4.8 shows that the correlation coefficient R for 0.183, which
means that the correlation between the dependent variable with the independent variables are fairly strong correlation based on the criteria
correlation coefficient value 0 – 0.25 is very weak correlation. Adjusted
R Square value or coefficient of determination is equal to 0.020. These figure shows that the four independent variables in the study of Board of director,
Board of independent, Managerial ownership and Institutional ownership can explain 2 of the amount of return on assets. While rest of them 100 - 2
= 98 is explained by other variables that are not investigated in this study such as the company size Sembiring, 2008. The total assets which indicates
the size of the companies is an important factor in the formation of profit. The large firms are considered more stable so as to produce profits than the small
firms. Thus, size of the company estimated to have the big influence to the company performance. Another variable is that the audit committee size,
according to
Ismail, et al Shukeri, et al 2014,
there is a significant relationship between the existence of an effective audit committee and the
firm performance as measured using the return on assets, it is true because the R
R Square Adjusted R
Square Std. Error of the
Estimate .183
a
.033 .020
.0735103
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increase of number the audit committee in the company will influence to the increased of their performance also especially in banking industries. And the
rest of the variables that usually used by the researchers are board of commissioner‘s size, the type of industries, earning management and so on.
4. Multiple Regression Analysis
