Table 2
WLS Regression Results: Dependent Variable is Smoothing Index
(t-statistics in parentheses below coefficients)
We split the sample based on the median value of SIRELRAN (O. 192). We expected the base model to provide a better explanation for the observed level of smoothing for companies where SIRELRAN was high. These expectations were confirmed (see Table 2, final column), with the adjusted R 2 rising to 0.34.