Hi, my dissertation looks at a panel dataset of N=966, n=69 firms across T=14 years.
Independent variable: WOB (proportion of women on board: in decimals)
2 dependent variables: ROA (return on asset: in decimals), TQ (Tobin's Q measure: range between <1 to >1)
I am unsure on how to interpret the effect of WOB on each of the dependent variables:-
(i) ROA - Regression table 1
~ Am I right to infer: A 1% point (unit) change in WOB leads to a 7.34% point (unit) increase in ROA?
(ii) TQ - Regression table 2
~Having difficulty with this as the coefficient is very big at 7.78, compared to ROA. Am I perhaps doing anything wrong?
~How can I interpret this coefficient using the idea of a 1% point (unit) change in WOB?
For your information, the formulas of each variable is:
WOB = number of women directors / total number of directors
ROA = net income (loss) / book value of total assets
TQ = (market value of stock + book value of debt) / book value of total assets
Control variables: BS = board size, FS = firm size (natural log), FA = firm age (natural log)
Thank you.
Independent variable: WOB (proportion of women on board: in decimals)
2 dependent variables: ROA (return on asset: in decimals), TQ (Tobin's Q measure: range between <1 to >1)
I am unsure on how to interpret the effect of WOB on each of the dependent variables:-
(i) ROA - Regression table 1
~ Am I right to infer: A 1% point (unit) change in WOB leads to a 7.34% point (unit) increase in ROA?
(ii) TQ - Regression table 2
~Having difficulty with this as the coefficient is very big at 7.78, compared to ROA. Am I perhaps doing anything wrong?
~How can I interpret this coefficient using the idea of a 1% point (unit) change in WOB?
For your information, the formulas of each variable is:
WOB = number of women directors / total number of directors
ROA = net income (loss) / book value of total assets
TQ = (market value of stock + book value of debt) / book value of total assets
Control variables: BS = board size, FS = firm size (natural log), FA = firm age (natural log)
Code:
xtset COMPANY YEAR, yearly
Code:
. xtsum WOB ROA TQ BS FS FA
Variable | Mean Std. Dev. Min Max | Observations
-----------------+--------------------------------------------+----------------
WOB overall | .1495199 .1073334 0 .6 | N = 966
between | .0772878 0 .3298424 | n = 69
within | .0750168 -.0692114 .4505403 | T = 14
| |
ROA overall | .0673593 .1032169 -1.104439 .6541691 | N = 966
between | .0603 -.0711783 .2470477 | n = 69
within | .0840633 -1.048663 .6061372 | T = 14
| |
TQ overall | 3.073908 2.173385 .5880593 26.99235 | N = 966
between | 1.494371 1.214629 8.949094 | n = 69
within | 1.587621 -3.830402 21.11716 | T = 14
| |
BS overall | 9.257764 2.182079 3 18 | N = 966
between | 1.880398 4.714286 15.14286 | n = 69
within | 1.128364 4.114907 14.40062 | T = 14
| |
FS overall | 8.414718 1.936693 3.070422 13.58957 | N = 966
between | 1.862711 5.032185 13.16478 | n = 69
within | .5725632 6.335153 10.44355 | T = 14
| |
FA overall | 3.138765 .5719432 .6931472 4.85203 | N = 966
between | .5307901 1.992805 4.799363 | n = 69
within | .2217574 1.839107 3.85401 | T = 14
Code:
reg ROA WOB BS FS FA, robust
Linear regression Number of obs = 966
F(4, 961) = 7.36
Prob > F = 0.0000
R-squared = 0.0216
Root MSE = .10231
------------------------------------------------------------------------------
| Robust
ROA | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
WOB | .0733581 .0377618 1.94 0.052 -.0007471 .1474632
BS | -.0079655 .0019387 -4.11 0.000 -.0117701 -.004161
FS | .007457 .0025467 2.93 0.003 .0024593 .0124546
FA | .0031653 .004069 0.78 0.437 -.0048199 .0111506
_cons | .0574504 .0201767 2.85 0.005 .0178549 .0970459
------------------------------------------------------------------------------
Code:
reg TQ WOB BS FS FA, robust
Linear regression Number of obs = 966
F(4, 961) = 37.66
Prob > F = 0.0000
R-squared = 0.1679
Root MSE = 1.9867
------------------------------------------------------------------------------
| Robust
TQ | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
WOB | 7.78169 .8359386 9.31 0.000 6.141214 9.422165
BS | -.2209036 .0284446 -7.77 0.000 -.2767243 -.1650829
FS | -.2787995 .0502885 -5.54 0.000 -.3774874 -.1801115
FA | -.026936 .0825185 -0.33 0.744 -.1888733 .1350014
_cons | 6.386028 .4221714 15.13 0.000 5.557544 7.214512
------------------------------------------------------------------------------
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