Quantcast
Channel: Statalist
Viewing all articles
Browse latest Browse all 72758

non linear relationship

$
0
0
I am trying to investigate the effect of profitability on firm's cash. I constructed two samples ; one for big firms and second for small firms.

I tried to find the if non liner relationship exists.

for small firms i find

cash = profitability + profitability^2 : both independent variables are negative and significant. is this okay ?? i thought it should be negative for profitability but positive for the square of profitability.

is this okay ? what kind of relationship is this ?

however, for big firms i find that profitability is negative but the square of this independent variable is positive.

your support is always appreciated

Faisal

Viewing all articles
Browse latest Browse all 72758

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>