0
$\begingroup$

i would like to check if there is an interaction between the independent contiunous variable leverage and the choice of auditor - dummy variable (audited by big4: 1). The dependent variable is contiunous (number of days till the disclosure of the annual reports).

I read that it is very difficult to interpret interaction terms between 2 continuous variables, and that if you have a continuous iv and a continuous moderator one should transform the moderator into a dummy.

Does it make a difference (regarding the validity or interpretation of the interaction term's coefficient) if the moderator is continuous and the iv is a dummy?

Thanks in advance! Johanna

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.