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From |
Richard Williams <richardwilliams.ndu@gmail.com> |

To |
statalist@hsphsun2.harvard.edu, statalist@hsphsun2.harvard.edu |

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

Date |
Sat, 06 Apr 2013 19:01:24 -0400 |

http://www3.nd.edu/~rwilliam/xsoc63993/l53.pdf

At 04:45 PM 4/6/2013, Nahla Betelmal wrote:

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 Robustearnings Mgt Coef. Std.Err. t P>t [95% Conf. Interval]size .0058268 .0092169 0.63 0.530-.0127153 .0243689leverage .0924198 .0724032 1.28 0.208-.0532367 .2380763MV .0046896 .0032752 1.43 0.159-.0018993 .0112784litigation .0310148 .0267527 1.16 0.252-.0228048 .0848344private_D -.0638102 .023056-2.77 0.008 -.110193 -.0174275same_D -.08197 .0273465 -3.00 0.004-.136984 -.026956OC_D -.0730767 .0288269 -2.54 0.015-.131069 -.0150844OC_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/

------------------------------------------- Richard Williams, Notre Dame Dept of Sociology OFFICE: (574)631-6668, (574)631-6463 HOME: (574)289-5227 EMAIL: Richard.A.Williams.5@ND.Edu WWW: http://www.nd.edu/~rwilliam * * 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/

**References**:**st: indicator variable and interaction term different signs but both significant***From:*Nahla Betelmal <nahlaib@gmail.com>

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