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SEEU Review vol. 5 Nr. 2 (pdf) - South East European University

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Fitim Deari, MBA and Media Deari<br />

Table 7: Regression statistics-Macedonian and Slovenian listed<br />

companies<br />

Macedonian listed companies Slovenian listed<br />

companies<br />

Number of obs 96 54<br />

R-squared 0.3765 0.6894<br />

Adj R-squared 0.3418 0.6570<br />

Testing hypothesis<br />

In this section we test hypothesis formulated above. We compare whether<br />

p-values are less than 0.01, between 0.01 and 0.05, and 0.05 or more.<br />

82<br />

Hypothesis 1-Agency cost theory<br />

Hi: There is positive relationship between leverage and size.<br />

Ho: There is negative relationship between leverage and size.<br />

Since p-value of 0.072>0.05, means that the null hypothesis would not be<br />

rejected at the 5 percent level for Macedonian listed companies. Since p-<br />

value of 0.000

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