Bookmark and Share

Notice: On March 31, it was announced that Statalist is moving from an email list to a forum. The old list will shut down on April 23, and its replacement, statalist.org is already up and running.


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

st: indicator variable and interaction term different signs but both significant


From   Nahla Betelmal <nahlaib@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: indicator variable and interaction term different signs but both significant
Date   Sat, 6 Apr 2013 22:45:31 +0100

Dear Statalist,

I am having difficulty interpreting the results from OSL regression. I
am trying to see whether Overconfident managers manipulate earnings in
a certain context.

The dependent variable earnings_Mgt is continuous  The problem is that
the indicator variable for overconfidence (OC_D) is negative and
significant, while the interaction between the indicator variable and
market_value variable (OC_MV) is positive and significant. What does
that mean?
Does it mean that overconfident managers manipulate earnings less than
others (rational managers), but when the market value is high they
manipulate earnings more than rational managers do?

Your help is highly appreciated,

many thanks

Nahla Betelmal


Linear regression		 Number of obs	= 56
F( 8, 47)	= 3.60
Prob > F	= 0.0025
R-squared	= 0.3719
Root MSE	= .08355
Robust
earnings Mgt       Coef.	Std. Err.	t	  P>t	        [95% Conf.	Interval]
size                .0058268	.0092169	0.63	  0.530	-.0127153	.0243689
leverage          .0924198	.0724032	1.28	  0.208	-.0532367	.2380763
MV                 .0046896	.0032752	1.43	  0.159	-.0018993	.0112784
litigation          .0310148	.0267527	1.16	   0.252	-.0228048	.0848344
private_D        -.0638102	.023056	-2.77	0.008	-.110193	-.0174275
same_D            -.08197	.0273465	-3.00	0.004	-.136984	-.026956
OC_D            -.0730767	.0288269	-2.54	0.015	-.131069	-.0150844
OC_MV          .0105348	.0049493	2.13	0.039	.000578	.0204916
_cons              .0381444	.0615391	0.62	0.538	-.0856564	.1619452
*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/faqs/resources/statalist-faq/
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   Site index