Does reverse scoring impacts the interpretation of the regression estimates in SEM model

[ganesh valiachi]

Respected Group Members,

I have done the reverse scoring for reverse charge mechanism RCM and Claiming Process: does that impact the interpretation of the below estimates? in the the the SEM model, if so, how?

Regression Weights			Estimate	S.E.	C.R.	P	Label
Ease of Business	<---	RCM	.243	.061	4.002	***	par_3
Ease of Business	<---	CLAIM_PRO	-.062	.061	-1.010	.015	par_4
Ease of Business	<---	GST_RATES	-.226	.072	-3.161	.002	par_5

Thankyou

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Thanks and Regards  

Ganesh Valiachi 

Ph.D. Research Scholar

Department of International Business

School of Management

Alagappa University

Karaikudi-630002(Tamil Nadu)-India

Contact   :+91 8825645636 

WhatsApp:+91 7708165097

[Neeraj Kaushik]

When we reverse code the items, all other things remain the same; just the sign of the beta coefficient gets reversed.

PFA a dummy data file test.sav with IDV-X (having 3 items) and DV-Y (having 3 items)

I reverse-coded all 3 items of Y and named them as z1,z2,z3

I run AMOS (PFA test.amw) and in the same diagram, I check the effect of X on Y as well as Z on Z (reverse code items of Y)

See the results—just the beta sign changes.

The convergent and discriminant validity as well as Cronbach alpha all are the same.

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[ganesh valiachi]

Noted with thanks, sir, 

And sir, that means the negative coefficient after the reverse coding cannot be interpreted as a negative impact on the dependent variable?

Let's say in my case the RCM has a positive effect on Ease of Business and the entities of the RCM are reverse coded. In that case, should it be interpreted as having a negative or positive impact?

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[Neeraj Kaushik]

Yes, with reverse coding the interpretation will also be reverse.

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