neglected firm effect

noun

The posited phenomenon that lesser-known companies, followed by fewer analysts, tend to produce abnormally high returns on their stocks, perhaps because of the lower liquidity or higher risk associated with the stock.

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Meanings

nounneglected firm effect (plural neglected firm effects)

plural neglected firm effects

  1. The posited phenomenon that lesser-known companies, followed by fewer analysts, tend to produce abnormally high returns on their stocks, perhaps because of the lower liquidity or higher risk associated with the stock.
Cite this entry
APA

neglected firm effect. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/neglected%20firm%20effect

MLA

“neglected firm effect.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/neglected%20firm%20effect. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “neglected firm effect,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/neglected%20firm%20effect.

Source: neglected firm effect on Wiktionary, CC BY-SA 4.0.