neglected firm effects

A form of neglected firm effect — 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

noun
  1. pluralplural of neglected firm effect
Cite this entry
APA

neglected firm effects. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/neglected%20firm%20effects

MLA

“neglected firm effects.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/neglected%20firm%20effects. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “neglected firm effects,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/neglected%20firm%20effects.

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