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," published 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 in May.
In the 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
- Baltimore Gas & Electric Chair: Veena Adlakha, professor
- CSX Chair: Alan Randolph, professor
- Doris and Robert McCurdy Chair: Kalyan Singhal, professor
- Ernst & Young Chair in Accounting: Lourdes White, associate professor
- Frank Baker Chair: Jaya Singhal, professor
- Harry Y. Wright Chair (Economics or Finance): Joel Morse, professor; Bansi Sawhney, professor
- John P. & Margaret M. Thompson Professorship in Management and Information Science: Alberto Bento, professor
- J. William Middendorf Distinguished Professor: Dennis Pitta, professor
Awards for Excellence in Teaching
- Dean Clifford C. James Chair for Distinguished Teaching: Ven Sriram, professor
- T. Rowe Price Excellence in Teaching (Economics or Finance): Nafeesa Yunus, assistant professor
Awards for Outstanding Service to the University and Community At-Large
- Dean Daniel Costello Service Award: Dalton Tong, executive-in-residence
- Turner Medallion: J.C. Weiss, executive-in-residence