Hello,
I (using STATA 14.2) have the following hypothesis: Geographic proximity (continuous) moderates the relationship between firm type (binary) and firm cooperation success (binary).
I answer this with the following regression:
The interaction was significant, so I did a post hoc probing for better interpretation. First, I created two new variables by adding and subtracting the standard derivation from the moderator "geo", which is centered:
Subsequently, I re-performed the interaction with each of the two values in a separate regression:
The result of the post hoc probing looks like this:

My question is now: how do I interpret the result? The odds ratios for both constellations of the interaction are identical (odds ratio: 1.492), which I understand that both high geographic proximity and low geographic proximity moderate the relationship between firm type and firm cooperation success. However, this does not make sense to me, since this would mean, in reverse, that the moderator, formulated in extreme terms, has the same influence on the relationship both when it exists and when it is absent. Am I interpreting the results correctly? If so, what can I do to make differences visible? I have already tried double and quadruple standard derivation, but the results above do not change at all in terms of odds ratio.
Thank you very much for your support!
I (using STATA 14.2) have the following hypothesis: Geographic proximity (continuous) moderates the relationship between firm type (binary) and firm cooperation success (binary).
I answer this with the following regression:
Code:
xtlogit coop type c.center_geo type#c.center_geo c.log_size c.exp age, re vce(cluster pid) or nolog
Code:
sum(center_geo) gen High_center_geo=center_geo-(.3458912) gen Low_center_geo=center_geo-(-.3458912)
Code:
xtlogit coop type c.High_center_geo type#c.High_center_geo c.log_size c.exp age, re vce(cluster pid) or nolog estimates store post_hoc_1 xtlogit coop type c.Low_center_geo type#c.Low_center_geo c.log_size c.exp age, re vce(cluster pid) or nolog estimates store post_hoc_2
My question is now: how do I interpret the result? The odds ratios for both constellations of the interaction are identical (odds ratio: 1.492), which I understand that both high geographic proximity and low geographic proximity moderate the relationship between firm type and firm cooperation success. However, this does not make sense to me, since this would mean, in reverse, that the moderator, formulated in extreme terms, has the same influence on the relationship both when it exists and when it is absent. Am I interpreting the results correctly? If so, what can I do to make differences visible? I have already tried double and quadruple standard derivation, but the results above do not change at all in terms of odds ratio.
Thank you very much for your support!
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