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Thread: A quick regression QUESTION

  1. #1
    pad1w07@soton.ac.uk
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    A quick regression QUESTION




    Hi i just have a really simple question regarding multiple regression. i have a independant variable called DPR that is the dividend payout ratio (the % percentage of dividends paid) and a dependant variable called ROA.

    basically i have a significant +0.62 coeffecient for DPR. so bearing in mind the definition of DPR (i.e. tis the % of dividends paid) is the correct interpretation;

    +0.62DPR means an increase in DPR means a 0.62 increase in ROA, hence paying a higher % of dividends has a positive influence on ROA.

    is that entire statement true ( based on the definition of dividends)

    THANKS

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    Quote Originally Posted by pad1w07@soton.ac.uk View Post

    basically i have a significant +0.62 coeffecient for DPR. so bearing in mind the definition of DPR (i.e. tis the % of dividends paid) is the correct interpretation;

    +0.62DPR means an increase in DPR means a 0.62 increase in ROA, hence paying a higher % of dividends has a positive influence on ROA.
    The interpretation is correct.
    In the long run, we're all dead.

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    Just out of curiosity, am I missing something (perhaps based on the definition of the variables you offered): if you are reporting the unstandardized coefficient, then the coefficient signifies the increase in the dependent given a 1 unit increase in the independent. Or?

    /Tobias

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