Abstract
The "neglected-firm effect" suggests that securities that analysts ignore offer higher returns (a "neglect premium") than securities that analysts follow and scrutinize heavily. Using a large and recent sample of securities, we reinvestigated the neglected-firm effect. Controlling for capitalization, we found no evidence of a neglect premium. Investors attempting to exploit the neglected-firm effect during the past 14 years are likely to have been disappointed.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 19-23 |
| Number of pages | 5 |
| Journal | Financial Analysts Journal |
| Volume | 53 |
| Issue number | 5 |
| DOIs | |
| State | Published - 1997 |
| Externally published | Yes |
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics