May 10, 2012
Contact: University Relations
Hoang Nguyen, assistant professor of finance in the Merrick School of Business, received the school's Outstanding Article of the Year Award for his 2011 publication, "The information content of stock splits," in the prestigious Journal of Banking & Finance, an internationally recognized publication focusing on domestic and international financial institutions and markets. The award was presented at the school's annual Faculty Recognition Day on May 2.
In their article, Nguyen and his co-authors said, "In contrast to existing evidence, we find that stock splits in aggregate are followed by positive abnormal future earnings growth, suggesting that stock splits contain information about future, rather than past, operating performance."
"For investors, this research is an important development in terms of understanding market behavior at a critical juncture," said Merrick School of Business Dean Darlene Smith. "Typically, markets consider a stock split to be a 'snapshot' for the firm, and the article does not claim that to be an incorrect assessment. But Nguyen and his fellow researchers took a wider view of the behavior, and found that splits may indicate something positive about future earnings potential. I credit our professor and his colleagues for proffering a new and interesting perspective on the way markets work, and how investors can capitalize on that information."
Nguyen's award was one of several presented to the faculty. Others are:
Awards for Outstanding Research and Scholarship
Awards for Excellence in Teaching
Awards for Outstanding Service to the University and Community At-Large
The University of Baltimore is a member of the University System of Maryland and comprises the School of Law, the Yale Gordon College of Arts and Sciences, the College of Public Affairs and the Merrick School of Business.