Test of Third Model (EPS)
The third model represents the regression analysis for EPS. All the variables in this model show no
significant relationship with EPS. This means that corporate governance has no influence on performance
as depicted by EPS. In addition, all the control variables showing in the EPS model show significant
connection to EPS. R2for the EPS model is 0.004, showing that about 0.4% of the sample identifies EPS.
F-statistic is 0.825. P-value is 0.594, making it greater than the standard deviation of 0.05. Allen (2005)
found similar results, supporting our research finding, and concluding that corporate governance
mechanisms have no significant impact on stock performance as measured by EPS. In comparing the best
regression model with the 3 models discussed in this paper, ROA is the one with the largest adjusted R2-
value.The adjusted R square of the three models EPS, ROE, and ROA are 0.1%, 0.8%, and 12.1%
respectively. This indicates that the best model in the current research is the ROA model.