Hi,
For my thesis i look at a possible moderating effect of having a big four auditor between the relation size or leverage and audit quality(measured by discretionary accruals).
Stata gives me this results:
Discretionary accruals = constant + size + leverage + Big 4 + interaction(leverage*Big 4) + interaction(size*Big4)+ control variables
Discretionary accruals = (-0.0038) + 0.0674+000758 + (-0.0230)+ (-0.0753)+ (0.0015)
Where bold numbers are significant
In very short my conclusion is that having a Big Four auditor moderates for leverage but not for size ( because leverage*Big4 is significant and size*Big4 not)
However, i should also do something with the independent variables size, leverage, and big 4.
Now is my question how to interpret these in order to say something about the moderating effect
Thank you for the help!
For my thesis i look at a possible moderating effect of having a big four auditor between the relation size or leverage and audit quality(measured by discretionary accruals).
Stata gives me this results:
Discretionary accruals = constant + size + leverage + Big 4 + interaction(leverage*Big 4) + interaction(size*Big4)+ control variables
Discretionary accruals = (-0.0038) + 0.0674+000758 + (-0.0230)+ (-0.0753)+ (0.0015)
Where bold numbers are significant
In very short my conclusion is that having a Big Four auditor moderates for leverage but not for size ( because leverage*Big4 is significant and size*Big4 not)
However, i should also do something with the independent variables size, leverage, and big 4.
Now is my question how to interpret these in order to say something about the moderating effect
Thank you for the help!
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