Dear all,
I hope you are doing good
I'm studying the non monotonic relationships between Financial constraints ( FC), CEO stock options (SO) and strategic risk taking as follow:
1st chapter : the impact of FC on SO using threshold regression
2d chapter : the impact of SO on risk taking using quantile regression
3d chapter : the impact of FC on risk taking using threshold regression
Then I try to investigate the moderating effect of SO in the relation between FC and risk taking ( here SO is the threshold variable )
Is this econometrically doable ?
Because my supervisor says this can be treated as mediation and not moderation ! ( because SO is once dependent variable and once independent variable); however mediation can take place only with linear regression.
So my question is it correct to study the moderating effect of SO through the Threshold model in this case ?
Kind regards
Sedki
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