Is there a neglected-firm effect?

Craig G. Beard, Richard W Sias

Research output: Contribution to journalArticle

10 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)19-23
Number of pages5
JournalFinancial Analysts Journal
Volume53
Issue number5
StatePublished - Sep 1997
Externally publishedYes

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Firm effects
Premium
Security analysts
Neglect
Investors
Capitalization

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

Cite this

Is there a neglected-firm effect? / Beard, Craig G.; Sias, Richard W.

In: Financial Analysts Journal, Vol. 53, No. 5, 09.1997, p. 19-23.

Research output: Contribution to journalArticle

Beard, CG & Sias, RW 1997, 'Is there a neglected-firm effect?', Financial Analysts Journal, vol. 53, no. 5, pp. 19-23.
Beard, Craig G. ; Sias, Richard W. / Is there a neglected-firm effect?. In: Financial Analysts Journal. 1997 ; Vol. 53, No. 5. pp. 19-23.
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