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4. Multiple Regression Analysis
Multiple regression analysis used to test the effect of two or more independent variables toward the dependent variable Ghozali, 2006:7.
Independent variables in this research are board size, company size, profitability and leverage and dependent variable is corporate social
responsibility reporting. Structural equation model that proposed as an
empirical model is as follows:
Notation: Y
= CSR Reporting α
= Intercept β
1....
β
4
= Regression coefficient X
1
= Board Size X
2
= Company Size X
3
= Profitability X
4
= Leverage ℮
= Error term permanent mistake estimate
Y = α + β
1
X
1
+ β
2
X
2
+ β
3
X
3
+ β
4
X
4 +
℮
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5. Hypothesis Test
Hypothesis testing in this research done with Determination
Coefficient Test, F test and t test.
a. Determination Coefficient Test Determination coefficient testing done to measure the magnitude
contribution of independent variables toward the dependent variable. Determination coefficient value is between 0 and 1. The value closes
to 1, it means that independent variables provide almost of all needed information to predict variation of dependent variable. In this study,
determination coefficient testing done with sees the value of Adjusted R
2
Ghozali, 2006:87. b. Simultaneous Regression Analysis Test - F
Test of F statistic is basically indicates whether independent variables altogether can influence the dependent variable Ghozali, 2006:88.
Basic for decision-making are as follows: Decision-making based on probability values:
1 If the sig. F 0.05, Ho is rejected, Ha failed to be rejected. 2 If the sig. F 0.05, Ho is accepted, Ha failed to be accepted.
c. Partial Regression Analysis Test - t Test of t statistic performed to determine the effect of one independent
variable toward the dependent variable Ghozali, 2006:88. Basic for decision-making:
Decision-making based on probability values:
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1 If the value Significance error rate α=0.05, then Ho is rejected.
2 If the value Significance error rate α = 0.05, then Ho is
accepted.
E. Operationalization Variable
Referring to the research hypothesis, there are five variables under study, i.e. board size, company size, profitability, leverage and CSR reporting.
According to Sekaran 2003 cited in Amin 2011:514, the four variables are measured by formulating operational definition. Defining
variable operationally involves the following steps: determine the variables, define the dimension sub-variable, and define elements indicators, and
determine the relevant measurement scale see Table 3.3.
1. Board Size
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