Dear all,

I am analyzing whether a CEO turnover (c. 600 events) has a long-term (5 years) impact on operating performance (OROA). I aim to use the following regression model:

∆OROA(t+5)= α + β1FORCED + β2OUTSIDE + β3FORCED*OUTSIDE + β4SIZE + Year Fixed Effects + ε

∆OROA(t+5): Change in OROA 5 years after the succession
FORCED: A dummy assigned the value of one if the succession is categorized as forced is used to capture the effect of forced vs voluntary turnover on operating performance.
OUTSIDE: A dummy assigned the value of one if the successor CEO is recruited from outside the firm is used to capture the effect of outside vs inside successors on operating performance.
FORCED*OUTSIDE: Interaction variable
SIZE: Firm size is measured using the natural logarithm of sales and used to control for the firm size effect on operating performance.

My questions are:
  1. How do I interpret the coefficient for the interaction variable? See attached screenshot for regression results
  2. Does it make sense to show the results from the same model first without the interaction and second with the interaction variable? The significance changes drastically between the variables.
All help is appreciated!