Scaled regression variables

[Thomas Boter]

Hi all,

For my masterthesis, I want to investigated to impact of the NSFR (main independend variable) on investments made by banks. The outcomes of my regression showed a significant and positive relation between NSFR and total invesments. People then told me to 'scale' my regression, so I used the same regression but with LN(total investments) and LN(total assets). The outcomes of that regression are totally different are not significant. Did I make a mistake or is it normal that outcomes change when taking the natural logarithm of the dependend variable and/or a control variable?

Thank you in advance,
Thomas

[Carlo Lazzaro]

Thomas:
as per your sky-rocketing within R-sqs you may have a quasi-extreme multicollinearity issue (see -estat vce- as a post estimation check after both regressions).