I urgently need your help to read the results of my regression analysis for my master thesis, which I need to hand in next week.
My DV is the natural logarithm of R&D expenditures, IV is a dummy variable labelled Decline, where 1= Firm is in a decline and 0= Firm is not in decline. The moderator is managerial ownership measured in percentage (0-100% or 0-1.0), labelled MOWN.
My thesis has two goals: 1) Find the relationship between IV (Decline) and DV (R&D Expenditures, log) 2) Find the moderating effect of MOWN on the relationship between IV-DV
I regressed Decline, MOWN, and Decline X MOWN simultaneously and got following coefficients.
$log(RD) = 6.984 - 0.852Decline - 4.703Mown + 3.030MownDecline$
The coefficient for Decline is -0.852***, which means that firms invest 85% less in R&D expenditures when Decline=1 (correct?)
Coefficient for MOWN: -4.703* Coefficient for MOWN x Decline: 3.030
How do I interpret the results of the interaction now? When a firm is in decline (Decline=1), firms will invest 303% more in R&D expenditures with a one-percentage point increase in MOWN?.
Secondly, can I treat the MOWN variable as additional IV as well? Saying that MOWN, the moderator, has also a direct impact in the DV? Saying that "a one-percentage point increase in MOWN decreases DV by 470%"
Thank you a lot for your help. I really appreciate it!