Dear Statalist,

I am using Stata 15.1 with Windows 10. I have a logit model on cross-border deals in Private Equity, the dependent variable being CrossBorder (binary, 1 if a deal is a cross-border deal and zero if the deals is a domestic deal). My main variable of interest is the logarithmic variable "Involvement" (variable name: log_InvolveC) which reflects the support and monitoring intensity of the PE fund in an investment, which I interacted with the variale log_NationalDeals_pa (logarithmic variable, number of deals in the target market in the investment year the deal took place. log_NationalDeals_pa is a proxy for target market attractiveness). The full logit model includes several controls.

I am using the logit command with robust standard errors and fund names clustered.
In the regression output log_InvolveC, log_NationalDeals_pa and the interaction term c.log_InvolveC##c.log_NationalDeals_pa are significant with p> |z| 0,001.

To interpret the values I ran margins dydx command and marginsplot afterwards to illustrate the results.

Code:

Code:
logit CrossBorder c.log_InvolveC##c.log_NationalDeals_pa log_IntExperience log_DomeExperience log_DryPowder log_AgeofFund LEADInv Syndication SynSize SynMultinat i.FundStage_C i.IndustryFE i.InvestmentYear, robust cluster (FundName)
margins, at(log_NationalDeals_pa=(0 (1) 15)) dydx(log_InvolveC) vsquish level(95)
marginsplot
Plot:

Array


The plot I created shows the average marginal effects of log_NationalDeals_pa on the probability of log_InvolveC for CrossBorder==1.
I interpret these results as negative influence of log_NationalDeals_pa on the probability of log_InvolveC for CrossBorder==1. Am I right?
According to my previous understanding average mariginal effects can only take values between 0 and 1.


How can negative values be interpreted here?

Thank you very much for your help!
Best regards
Antonia