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  • Categorical Moderator

    Dear reader,

    Currently I am facing some problems regarding the statistics of my Master's Thesis. I want to test the positive and negative effects of my moderator (organizational culture categorized into clan, adhocracy, hierarchy and market culture) on the relationship between my IV and DV. However, I do not know which regression to run. Subsample analysis provides me with the insight that their is a significant difference between the four categories, nevertheless, I want to test whether they have an individual negative or positive effect on my DV--> IV (ROA) relationship. I hope that someone can help me out. I was told that running OLS regression to test the moderating effect only applies for a continuous moderator variable.

    Kind regards,
    Tamara
    Last edited by Tamara vandeHoef; 17 Nov 2022, 08:21.

  • #2
    Tamara:
    welcome to this forum.
    you may want to interact your moderator variable (that can be continuous or categorical) with the -depvar- you're interested in (that I assume to be continuous) and check its effect as far as variations in the conditional mean of your return on assets are concerned:
    Code:
    regress ROA i.moderator##c.depvar <otherstuff>
    Kind regards,
    Carlo
    (Stata 19.0)

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    • #3
      Carlo, thank you for your reaction! I will run the regressions.

      Kind regards,
      Tamara

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