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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/

**Follow-Ups**:**Re: st: indicator variable and interaction term different signs but both significant***From:*Anthony Fulginiti <fulginit@usc.edu>

**Re: st: indicator variable and interaction term different signs but both significant***From:*Anthony Fulginiti <fulginit@usc.edu>

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