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 at the end of May, and its replacement, statalist.org is already up and running.


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

st: Interpretation of the OSL regression coefficient of a proportion dependent and interaction independent variable with dummy


From   Nahla Betelmal <nahlaib@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: Interpretation of the OSL regression coefficient of a proportion dependent and interaction independent variable with dummy
Date   Tue, 14 May 2013 15:40:46 +0100

Dear Statlist,

I have two regressions that I am not sure how to interpret the
coefficient. In the first one the dependent variable is earnings
management proxied by ( abnormal accruals scaled by total assets), the
independent variable is an interaction between a dummy variable (type
of managers OC) and valuation  (proxied by a market to book ratio
M/B)  :

A- earnings mgt= -0.0566MB + -0.10 Oc_dummy + 0.0569 MB*Oc-dummy

Should I say OC mangers are likely to manage earnings by 5.69 cents
per dollar increased in MB more than other managers. Or

OC mangers are likely to manage earnings by 0.0569 percent for one
percent increased in MB more than other managers

The second regression has interaction between two dummy variables
instead. MB is presented as dummy =1 if higher than industry average.

B- earnings mgt= -0.056 MB + -0.004 Oc_dummy + 0.078 MB*Oc-dummy

 How can I interpret the coefficients in this case? Is it any different

The interaction term in both regressions is significant.

Thank you so much, I highly appreciate your kind help

Nahla Betelmal
*
*   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