I am conducting a triple difference regression to determine the impact of a new Policy on stock returns. I am interested in the impact of the Policy on treated stock returns, as well as the impact on treated financials stocks, which is a sub-group within the sample.
Below are my baseline DIDID results, where the dependent variable is Log of stock returns, FTSE is a dummy which equals 1 for treated stocks, Post is a time dummy which equals 1 for dates after the Policy was introduced, and Banks is a dummy equalling 1 for financial stocks.
All Stocks | |
Dependent Variable: Log of Stock Returns | |
15 days | |
FTSE | 0.0971*** |
(0.0228) | |
Post | 0.1703*** |
(0.0134) | |
Banks | -0.0360 |
(0.0296) | |
FTSE x Post | -0.1237*** |
(0.0172) | |
Banks x Post | -0.0212 |
(0.0535) | |
FTSE x Banks | -0.0210 |
(0.0416) | |
FTSE x Post x Banks | 0.0752 |
(0.0735) | |
Size | 0.0101*** |
(0.0037) | |
Income | -0.0125*** |
(0.0037) | |
Headquarters | -0.0017 |
(0.0151) | |
Currency | -0.0561*** |
(0.0168) | |
Constant | -0.0107 |
(0.0331) | |
R2 | 0.015 |
Root MSE | 1.4696 |
Observations | 152,945 |
Is this how to interpret the triple interaction term FTSE x Post x Banks?
Thank you very much for your help!
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