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st: interpretation for negative and positive slope combination of interaction term
From
Nahla Betelmal <[email protected]>
To
[email protected]
Subject
st: interpretation for negative and positive slope combination of interaction term
Date
Thu, 9 May 2013 14:20:55 +0100
Dear Statalist,
As you can see below, I have a interaction term between OC (dummy =1
for overconfidence) and MV (continuous variable for market value). The
interaction term is positive and significant. I want to calculate the
slope against MB for overconfident managers which should be the
coefficient of MV plus the coefficient of OC*MV.
I am confused how to get this figure because MV is negative and OC*MV
is positive. So, Should it be -0.0566241 + 0.0596146= 0.003? if this
is true how can I interpret how many times the effect of MV is larger
for overconfident managers?? 0.003/0.0566.
I am really confused and I highly appreciate your help please
Linear regression Number of obs = 49
F( 10, 38) = 3.23
Prob > F = 0.0043
R-squared = 0.4385
Root MSE = .08529
------------------------------------------------------------------------------
| Robust
earnings managment| Coef. Std. Err. t P>|t| [95%
Conf. Interval]
-------------+----------------------------------------------------------------
var1 | .0081153 .0058432 1.39 0.173 -.0037137 .0199443
MV | -.0566241 .0353602 -1.60 0.118 -.128207 .0149588
var3| .1992782 .093338 2.14 0.039 .0103252 .3882312
var4 | -.0040891 .0109331 -0.37 0.710 -.0262219 .0180437
var5 | .0817256 .1169071 0.70 0.489 -.1549405 .3183917
var6 | .0291373 .026944 1.08 0.286 -.0254079 .0836825
var7 | -.0646094 .0320074 -2.02 0.051 -.129405 .0001863
var8 | -.0867868 .0311875 -2.78 0.008 -.1499227 -.0236509
OC| -.1040174 .0556577 -1.87 0.069 -.2166906 .0086558
OC*MV | .0596146 .0324333 1.84 0.074 -.0060433 .1252724
_cons | .1643745 .0994735 1.65 0.107 -.0369991 .365748
many Thanks
Nahla Betelmal
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