Sourced : Computed from Data using SmartPLS
AVE= Average Variance Extracted
CR= Composite Reliability
This shows that if the figures arrived at are above the cut-off values, then measures have sufficient convergent validity. Based on the result of table 2, all but debt ratio are valid. Despite the failure of a single measure, the overall performance of the loading is at 90%. In terms of the AVE, the reported result is valid at 0.793, 0.751 and 0.854 are all above the cut-off value of 0.7. Also, the CR sufficient satisfy the validity condition above 0.5.