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


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