Two regression equations are like this:
Tobin q = dominant owner CEO + dominant owner CEO * board ability + other control variables
Tobin Q = dominant owner CEO + dominant owner CEO * quad board + other control variables
Now, I would like to do a chow test in order to understand that the two coefficient of dominant owner CEO * board ability and dominant owner CEO * quad board are statistically different.
In fact, I did the chow test to investigate if the interaction terms are statistically different. The Chow test provides significant results (Prob > F = 0.0181). This implies, as per my understanding that the terms are statistically different. However whether the magnitude of one is more than another is something which I guess Chow test can’t determine but this will be interpreted probably the way we interpret regression coefficients. Am I correct?
Your early reply will be highly appreciated.
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