Firm anomalies

(redirected from Firm Anomaly)

Firm anomalies

Trading strategies that generate abnormal returns based on firm-specific characteristics.

Firm Anomalies

A trading strategy that involves investing in a certain firm believing that characteristics specific to that firm will cause it to outperform its industry or the market as a whole. Firm anomalies may include a particularly good or well-regarded management team, for example. Firm anomaly is a characteristic of behavioral economics, which takes into account non-quantifiable matters such as human capital.