a. the effect of quadratic geographic segment (GS) diversification on firm performance is significant if I include crisis as a moderator - however -
b. if I run the regression for the pre-crisis (2001-2006) period and post crisis (2010-2019) period separately and drop the moderator "Crisis", the effect of geographic segment (GS) diversification on firm performance is no longer significant.
I am wondering how to interpret this result and was hoping I could gets some guidance from this group. I am pasting my results below:
a. Regression effect of quadratic geographic segment (GS) diversification on firm performance is significant with "crisis" as a moderator
Code:
. xtreg ROA_win05 LnRev TDTE Co_Age c.l1.GSFinal##c.l1.GSFinal##Crisis if Excl_bynd_delisting != > 1 & Year !=7 & Year !=8 & Year !=9, fe Fixed-effects (within) regression Number of obs = 1,486 Group variable: ID Number of groups = 176 R-sq: Obs per group: within = 0.1685 min = 1 between = 0.1286 avg = 8.4 overall = 0.1064 max = 15 F(8,1302) = 32.99 corr(u_i, Xb) = -0.6592 Prob > F = 0.0000 ---------------------------------------------------------------------------------------------- ROA_win05 | Coef. Std. Err. t P>|t| [95% Conf. Interval] -----------------------------+---------------------------------------------------------------- LnRev | 1.714848 .1508791 11.37 0.000 1.418855 2.010841 TDTE | .000211 .0005493 0.38 0.701 -.0008667 .0012886 Co_Age | -.2314909 .0404682 -5.72 0.000 -.3108809 -.1521009 | GSFinal | L1. | -15.84082 2.337321 -6.78 0.000 -20.42614 -11.25549 | cL.GSFinal#cL.GSFinal | 11.38014 2.240617 5.08 0.000 6.984526 15.77575 | 1.Crisis | -2.421146 .5444138 -4.45 0.000 -3.48917 -1.353121 | Crisis#cL.GSFinal | 1 | 14.38415 2.3525 6.11 0.000 9.769045 18.99926 | Crisis#cL.GSFinal#cL.GSFinal | 1 | -11.83307 2.295733 -5.15 0.000 -16.33681 -7.329325 | _cons | 3.553605 .9702083 3.66 0.000 1.650262 5.456947 -----------------------------+---------------------------------------------------------------- sigma_u | 5.249395 sigma_e | 3.7141179 rho | .66639907 (fraction of variance due to u_i) ---------------------------------------------------------------------------------------------- F test that all u_i=0: F(175, 1302) = 5.82 Prob > F = 0.0000
b. Regression effect of quadratic geographic segment (GS) diversification for the pre-crisis (2001-2006) period WITHOUT moderator "Crisis" (post crisis period has similar results and hence I am not pasting that.)
Code:
. xtreg ROA_win05 LnRev TDTE Co_Age c.l1.GSFinal##c.l1.GSFinal if Excl_bynd_delisting !=1 & Year > <7, fe Fixed-effects (within) regression Number of obs = 303 Group variable: ID Number of groups = 98 R-sq: Obs per group: within = 0.0905 min = 1 between = 0.1059 avg = 3.1 overall = 0.0901 max = 5 F(5,200) = 3.98 corr(u_i, Xb) = -0.1687 Prob > F = 0.0018 --------------------------------------------------------------------------------------- ROA_win05 | Coef. Std. Err. t P>|t| [95% Conf. Interval] ----------------------+---------------------------------------------------------------- LnRev | 1.79619 .4877115 3.68 0.000 .834474 2.757907 TDTE | -.0029504 .0026559 -1.11 0.268 -.0081877 .0022868 Co_Age | -.0180046 .1883957 -0.10 0.924 -.3895014 .3534922 | GSFinal | L1. | -1.234931 4.66017 -0.26 0.791 -10.4243 7.95444 | cL.GSFinal#cL.GSFinal | 2.979751 3.566609 0.84 0.404 -4.053233 10.01273 | _cons | -2.280197 3.572285 -0.64 0.524 -9.324373 4.763978 ----------------------+---------------------------------------------------------------- sigma_u | 6.3345603 sigma_e | 3.0909695 rho | .80769024 (fraction of variance due to u_i) --------------------------------------------------------------------------------------- F test that all u_i=0: F(97, 200) = 7.96 Prob > F = 0.0000
0 Response to Significance of regressor effect with and without moderator
Post a Comment