Andrew Hayes (process

macro)
Interpretation
Bilal Javed Khan (13-NTU-
1183)
Behavioral Finance
 SPSS Statistical Computing
Mediation using the Process Macro

Mediation: In mediation the effect of one variable is

transmitted to another variable through the mediator
variable. For example the effect of X is transmitted to Y
through variable M.
This can be seen in the diagram below of a classical
mediation model (adapted from Baron & Kenny, 1986). In
the diagram "a" is the regression coefficient predicting M by
X. "b" is the coefficient predicting Y by M, And, "c'" is the
coefficient predicting Y from X.
 Partitioning the Effect of X on Y: In a mediation model
the effect of variable X on Y can be partitioned into two
parts: 1) the direct effect of X on Y, and 2) the indirect effect
of X on Y via the mediator M. Combined, the direct and
indirect effect of X on Y is known as the total effect.
Direct Effect: The direct effect is the effect of X on Y when
the mediator is included in the model. In the diagram above
the direct effect is shown as "c'."
Indirect Effect: The indirect effect is a measure of how
much of the effect of X on Y that is being mediated. Another
term for the indirect effect is the mediation effect.
In a classical mediation model the indirect effect is obtained
by multiplying the "a" coefficient times the "b" coefficient in
the diagram above.
 Path Analysis

X Y
C

M
A B
X Y

c
 Path Analysis
C = total effect of X on Y
AB = Indirect effect of X on Y
C = Direct effect of X on Y
Total effect = Direct effect + Indirect
effect
C = c +
(AB)
Indirect effect = Total effect - direct
effect
Effect of Financial statement on Investment
Decision with mediation As Framing effect

Conceptual framework:
Framing
effect

Financial Investment
Statement Decision
 Results
EFFECT OF FS ON FE
Outcome: FE

Model Summary
R R-sq MSE F df1 df2 p
.3741 .1399 .2151 7.8085 1.0000 48.0000 .0075

Model
coeff se t p LLCI ULCI
constant 2.0580 .4446 4.6294 .0000 1.1642 2.9519
FS .3852 .1378 2.7944 .0075 .1080 .6623

R : R shows the relation between financial statement on framing effect ( 37% relation )
Coeff: .3852 shows the effect of financial statement on framing effect
Outcome: DM

Model Summary
R R-sq MSE F df1 df2 p
.2867 .0822 .1902 2.1051 2.0000 47.0000 .
1332

Model
coeff se t p LLCI
ULCI
constant 2.3439 .5029 4.6610 .0000 1.3322 3.3555
FE .0680 .1358 .5009 .6188 -.2051 .3411
FS .2318 .1398 1.6580 .1040 -.0495 .5130
 Outcome: DM

Model Summary
R R-sq MSE F df1 df2 p
.2781 .0773 .1873 4.0221 1.0000 48.0000
.0506

Model
coeff se t p LLCI ULCI
constant 2.4838 .4148 5.9874 .0000 1.6497
3.3179
FS .2580 .1286 2.0055 .0506 -.0007 .
5166