Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
RESULTS 
The dependent variable, CAR, has a minimum value of -0.9728 and a maximum of 1.2857 with an average 
of 0.0164. The normality test of CAR does not reveal significant deviation. Table 1 presents Pearson correlation 
coefficient estimates for CAR, MFEPS, SFEPS and OEXFEPS. P-values are reported in parentheses. As expected, 
MFEPS does not appear to be significantly associated with CAR. SFEPS and OEXFEPS are positively and 
negatively related to CAR, respectively. However, there is moderate association between SFEPS and OEXFEPS 
with a Pearson Correlation Coefficient of 0.6832 and significant at 0.0001 level. The association between MFEPS 
and SFEPS is 0.6240 and significant at 0.0001 level. These correlations might pose multicollinearity problems to our 
analysis. Therefore, formal tests must be carried out to assess whether the significance level will be affected by 
multicollinearity in our regression analysis.
 

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