A.

Total Asset Turnover Ratio measures how all assets owned by the company are

operated in support of the company's sales (sitanggang: 2014.27). The higher the

ratio the more efficient the companies assets are. Furthermore the refund of the

asset will be faster as well.

1. Classical Assumption test

Before multiple linear regression analysis to the research hypothesis, the classical

assumption test needs to be done first that is process as follow:

a. Multicolinearity

According to Imam Ghozali (2011: 105-106), multicolinierity test is aimed to test

whether the regression model find a correlation between independent variables.

Multicolinierity test is done by looking VIF ( )from each independent variable. If VIF

<10, it can be concluded that the data is free from multicolinierity symptom.

b. Autocorrelation

Autocorrelation tests whether the linear regression model has no correlation between

bullies error in period t with bullies error in period t-1 (previous). If there is a

correlation, then there is a problem called autocorrelation (Imam Ghozali, 2011: 110).

this study is conducted to examine the presence or absence of autocorrelation

symptoms by using the Durbin-Watson test (DW test).

c. Heteroscedasticity

Heteroscedasticity test aims to test whether inequality residual variance from one

observation to another observation occurs in the regression model. There are several

ways that can be done to test heteroscedasticity. They are graphs, park, glejser, and

white test. The tests in this study uses the graphic plot between the predicted value of
 the dependent variable that is ZPRED with its SRESID residual. Heteroscedasticity

does not occur if there is no clear pattern, as well as the points spreading above and

below the number 0 on the Y axis (Imam Ghozali, 2011: 139-143).

Normality test aims to test whether the regression model or residual confounding

variables have a normal distribution. As it is known that the t test and F assumes that

the value of the residuals follow a normal distribution. If this assumption is violated,

the statistical test is invalid for a small samples. There are two ways to detect whether

the residual is normally distribution or not. Thus are by doing graphs analysis and

statistical tests. Statistical test of Kolmogorov-Smirnov Test is perform to test whether

the data is normally distributed or not. Residual is normally distributed if its

significance value > 0.05 (Imam Ghozali, 2011: 160-165).

2. Regression Analysis

Regression analysis is used to analyze the influence of independent variables on the

dependent variable. This study involves six independent variables that are analys using

multiple regression analysis. Multiple linear regression is helpful to examine some of the

independent variables which are correlated with the dependent variable being tested.

The model used is as follow:

Y = α+ β1X1+ β2X2+ β3X3+β4X4 + β5X5+e

Description:

Y = Performance

α = Constants

β1- β3 = The regression coefficient

X1 = profitability ratio
X2 = liquidity ratio

X3 = leverage ratio

X4 = activity ratio

X5 = EVA

E = Error

This analysis is used to determine the effect of several independent variables (X) to the

dependent variable (Y). Multiple linear analysis is perform by using coefficient

determination test, t test and F test. The regresion models used in this study are as follow:

a. Determination coefficient test (R2)

Determination coefficient test (R2) essentially measures how far the ability of the

model is in explaining the variations in the dependent variable. The coefficient of

determination is between zero and one. R2 value is small, which means that the ability

of the independent variables in explaining the variation of the dependent variable is

very limited. A value close to the mean of independent variables provides almost all

the information needed to predict the variation of the dependent variable (Imam

Ghozali, 2011: 97).

Partial Test (uji t)

The purpose of the partial test is to determine how far the influence of the independent

variable (X) is to the dependent variable (Y) partially. The hypothesis testing will be

done using a significance level of 0.05 (α = 5%) or a confidence level of 0.95. The

hypothesis is formulated as follow:

Ho : bi = 0 meaning there is no influence of the independent variable on the dependent

variable.
 HA : bi ≠ 0 meaning that there is the influence of the independent variable on the

dependent variable.

1. This testing is done by comparing the value of t arithmetic with t table:

a. Ho is accepted but Ha is rejected if t table > t arithmetic

b. Ho is rejected but Ha is accepted if t table < t arithmetic

T-count value obtained from the parameter value is divided by the standard of error.

T-table value can be seen in the table with a statistical significance level value

corresponding the degree of freedom.

2. By using a significance level of 0:05 (α = 5%), Conditions of acceptance or rejection

of the hypothesis are as follow:

a. If the significant value> 0.05, then H0 is accepted.

b. If the significant value <0.05, then Ho is rejected.

b. F Test

F Test basically indicates whether all the independent variables or free inclusion in the

model have influence against the dependent variable. This test also uses a significance

level of 5% or 0.05. The F Test procedures are as follow:

1. Determine the null hypothesis and the alternate hypothesis:

Ho: b1 = b2 = b3=b4=b5 = 0, its means that there is no influence of X1, X2,

X3,X4,X5 to word Y

Ha: b1 ≠ b2 ≠ b3 ≠b4≠b5≠ 0, its means that there is have influence of X1, X2, X3,

X4,X5 to word Y

2. Make F test decisions

If the F test value is greater than 4, Ho is rejected at 5% confidence level. in other

words, the alternative hypothesis (Ha) is accepted, which means that all

independent variables simultaneously and significantly affect the dependent

variable.