English Dictionary

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.

The neglected firm effect is a phenomenon in finance where stocks of less well-known companies tend to outperform stocks of more well-known companies.

意味（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.