Tuesday, June 2, 2020

How to interpret interaction term if it is similar to independent coefficient?

Hi all,

Im struggling with the results of my regression. Im testing the moderation effect (M) on the B - performance relationship, and get the following results:
Code:
 
(9) (10) (11) (12)
VARIABLES Revenue growtht+1 ROAt+1 Revenue growtht+3 ROAt+3
Mt (=1) -0.0217** (0.0478) 3.792 (0.2331) 9.369*** (0.00213) -0.0101 (0.369)
Bt -0.147*** 43.86*** 31.07** -0.0901*
(0.00174) (0.00132) (0.0148) (0.0568)
Interaction termt (=1) 0.147*** -43.81*** -30.36** 0.0914*
(0.00177) (0.00131) (0.0172) (0.0531)
As you can see, the coefficients on the interaction term are quite similar but reversed to the coefficient of the independent variable. I'm struggling to interpret these findings, since I can not find out why the coefficients are so similar but in the opposite direction.

Can someone please help with the interpretation?

Thanks a lot

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