How to interpret interaction effect when the relation it interacts with is negative instead of positive

#1
Hi all!

I am struggling with an issue in writing my thesis: I am conducting a study about the effects of compensation on firms. One of the hypotheses (H2) argues that the amount of shares a manager possesses ex ante negatively moderates the (presumed) positive relationship of compensation on firms. However, this presumed positive relationship (H1), turns out to be a negative relationship in fact. H2 is indeed significantly negative in terms that it makes H1 more negative. Now my question is: Does this confirm my hypothesis 2 or not? Because technically it moderates it negatively, but it was based on the assumption that it would make the positive relation less positive, and not a negative relation more negative.

Thank you in advance for your help!
 

hlsmith

Not a robit
#2
What evidence (literature) did you base your hypothesis on - was it founded? Your hypothesis was wrong, so it would reject it I guess, since the presented context was not well known. I wouldn't get all hung up on whether it rejected or provided evidence toward supporting it. I would just state that the directionality in the hypothesis was wrong and too specific, thus results moved in the inferred direction, but there was a different type of underlying relationship. This is why the tendency is to have two-sided hypotheses, so you don't get burned if the true data generating process is not known.
 
#3
Yes it is based on previous research, but this previous research examined variables that were just different - but related enough to be able to make the hypotheses I made - . Anyways, thank you very much, it helped a lot! I will assimilate it in my thesis.