Hi all,
I was wondering if someone could help me out with some questions I have regarding the interpretation of coefficients.
I'm investigating the impact of the gender ratio on ROA for 200 firms in French.
My independent variable, gender ratio, is a proportion, so 0.5 for 50% female directors on the board etc.
My dependent variable is ROA and is ebit/average total assets.
Now when I run an IV the coefficient in the second stage of gender ratio is 0.046, significant at the 1% level. How should I interpret this?
Is it correct to say that an increase in 1% of gender ratio results in an increase of 4,6% of ROA?
Thank you in advance.
Kind regards,
Jason Smit
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