The Impact of Equity Financing on Financial Performance: Evidence from Jordan

Figure 1.

Results of the simple linear regression (Source: Author's research)

Variables	R	R2	Adjusted R2	Durbin–Watson	F Change	B	Std. Error	Beta	t	Sig.	Decision
AI ➔ ROE	0.487a	0.237	0.234	1.929	97.140	0.466	0.047	0.487	9.856	0.000	Accepted
RE ➔ ROE	0.496a	0.246	0.243	1.898	102.049	0.475	0.047	0.496	10.102	0.000	Accepted
CF ➔ ROE	0.487a	0.237	0.234	1.949	97.100	0.494	0.050	0.487	9.854	0.000	Accepted
PBP ➔ ROE	0.477a	0.227	0.225	2.018	92.126	0.464	0.048	0.477	9.598	0.000	Accepted

Reliability analysis (Source: Author's research)

Variables	Cronbach's alpha value
Angel Investors (AI)	0.831
Retained Earnings (RE)	0.834
Crowdfunding (CF)	0.837
Ploughed-Back Profit (PBP)	0.835
Return on Equity (ROE)	0.870

Correlation analysis (Source: Author's research)

	AI	RE	CF	PBP	ROE
AI	1.000	-	-	-	-
RE	0.679	1.000	-	-	-
CF	0.662	0.534	1.000	-	-
PBP	0.572	0.657	0.655	1.000	-
ROE	0.487	0.496	0.487	0.477	1.000

Descriptive analysis (Source: Author's research)

	AI	RE	CF	PBP	ROE
Mean	2.89	3.12	2.86	2.65	2.59
Median	2.75	3.00	2.80	2.50	2.50
Mode	2.50	2.75	2.80	2.25	2.50
Std. deviation	0.70	0.70	0.66	0.69	0.67
Minimum	1.00	1.00	1.60	1.00	1.00
Maximum	4.50	4.75	4.80	4.75	5.00
Sum	913.00	985.50	901.30	836.50	817.80

Results of the multiple linear regression (Source: Author's research)

Dependent Variable
Financial Performance (ROE)	Independent Variable	B	Std. Error	Beta	T-test	Sig
	Equity Financing	0.200	0.016	0.570	12.280	0.000
	R	0.570	-	-	-	-
	R2	0.325	-	-	-	-
	Adjusted R2	0.323	-	-	-	-
	F	150.806	-	-	-	-
	Durbin–Watson (DW)	1.846	-	-	-	-