THE ILLINOIS INTERNATIONAL JOURNAL OF ACCOUNTING SYMPOSIUM Held jointly with the University of Cyprus and Cyprus University of Technology June 8-10, 2017 With the sponsorship of 1 Symposium Organizer Vernon K. Zimmerman Center for International Education and Research in Accounting at the University of Illinois, Urbana-Champaign Local Organizers University of Cyprus, School of Economics and Management Cyprus University of Technology, School of Management and Economics Local Host Contacts Prof Andreas Charitou, School of Economics and Management, University of Cyprus, Conference Co-Chair, Co-Editor of TIJA, [email protected] Prof Panayiotis Theodosiou, School of Management and Economics, Cyprus University of Technology, Conference Co-Chair, [email protected] Marios Kyriakou, School of Economics and Management, University of Cyprus, Administrative Officer, [email protected] Local Sponsors Hellenic Bank PwC Cyprus 2 The International Journal of Accounting The International Journal of Accounting is a quarterly publication established in 1966 at the University of Illinois by the late Professor Vernon K. Zimmerman. The aims of The International Journal of Accounting are to advance the academic and professional understanding of accounting theory and practice from an international perspective and viewpoint. The Journal recognizes that international accounting is influenced by a variety of forces i.e. governmental, political and economic. Editor: Professor A. Rashad Abdel-khalik, Professor of Accountancy and V.K. Zimmerman Professor in International Accounting, Director of the V. K. Zimmerman Center at the University of Illinois Vernon K. Zimmerman Center for International Education and Research in Accounting at the University of Illinois The V. K. Zimmerman Center was originally established in 1962 as the Center for International Education and Research in Accounting (CIERA), leading the nation in the study and teaching of international topics as they relate to the field of accounting. The Zimmerman Center is home of The International Journal of Accounting and also hosts a number of visiting scholars from around the world each year. Illinois’ landmark contributions to accounting research and education date back to 1902, when the first accounting courses were developed. The Illinois tradition of excellence in graduate accountancy education began with the awarding of the Department’s first master’s degree in 1922 and its first Ph.D. in 1939. University of Cyprus The University of Cyprus was established in 1989 and admitted its first students in 1992. It was founded in response to the growing intellectual needs of the Cypriot people, and is well placed to fulfil the numerous aspirations of the country. The University is a vigorous community of scholars engaged in the generation and diffusion of knowledge. Despite its brief history, the University of Cyprus has earned the respect of the international academic community and the appreciation of Cypriot society. Admission for the majority of undergraduate students is by entrance examinations organized by the Ministry of Education and Culture of the Republic of Cyprus, and the competition for places is intense. A number of places are reserved for students with special needs or circumstances. Every effort is made to offer practical solutions to students facing specific problems, be it access to University facilities, or assistance on academic issues. When the University of Cyprus first opened its doors to students, the incoming class consisted of 486 undergraduate students. During the academic year 2014-2015 there were 6987 students (undergraduate and postgraduate). There are 8 faculties, 22 departments and 11 research units at UCY. The School Economics and Management, one of the first Schools of the University of Cyprus, was founded in 1989, but began operations in 1992. The objectives of the School are to diffuse knowledge, introduce students in critical thinking, and enhance students´ expertise and competencies. It also seeks to enhance the moral, right behavior and important values. It provides students with the essential tools that will help them face the challenges of today. The School also offers its students suitable academic qualifications that will allow them to achieve a successful career, either in the private or in the public sector. The School of Economics and Management comprises the Department of Business and Public Administration, the Department of Accounting and Finance and the Department of Economics. It also maintains two research 3 units, the Economics Research Centre and the Centre for Banking and Financial Research. The School offers a number of undergraduate and postgraduate studies to prospective students. Cyprus University of Technology The Cyprus University of Technology aspires to develop itself into a modern, pioneering University able to offer education and high level research in leading branches of science and technology which have high impact on the economic, technical, and scientific sectors. With its orientation towards applied research, the University aspires to establish for itself a role in support of the state and society in their efforts to confront problems, which cover all areas of science and technology. The programmes of the CUT to a large extent complement scientific areas, which are not currently covered at Undergraduate and Postgraduate levels by the University of Cyprus or any other institution of higher education in the country. The Cyprus University of Technology was founded by law on December 2003 and welcomed its first students on September 2007. The Cyprus University of Technology is based at the city of Limassol, where all six faculties are located. The Faculty of Management and Economics at the Cyprus University of Technology is committed to developing professionally competent and socially responsible students by offering high quality and value-based education. It is comprised of highly qualified and internationally recognized academic members with wide ranging expertise and ties to business world who collectively are taking the Faculty forward ensuring the excellence of the training and education provided. It carries a tradition of high quality research while maintaining strong relationships with local business community through ongoing engagements in discussions and collaborative activities with firm and industry leaders aiming to strengthen employment prospects for its graduates. The Faculty of Management and Economics consists of the Department of Hotel and Tourism Management and the Department of Commerce, Finance and Shipping. 4 Table of Content WELCOME REMARK 6 SYMPOSIUM CO-CHAIRS 7 KEYNOTE SPEAKERS 9 PANELISTS 11 INFORMATION HIGHLIGHTS 13 MAPS 14 PROGRAM HIGHLIGHTS 15 SYMPOSIUM DETAILED PROGRAM 16 PhD CONSORTIUM 19 OPTIONAL TOUR 21 CITY OF LIMASSOL 22 5 Welcome Remark Dear Participants, Welcome to the Illinois International Journal of Accounting Symposium hosted by University of Cyprus and Cyprus University of Technology. We are delighted that you have joined us. We hope that you will enjoy the opportunities from the symposium to exchange ideas. This symposium’s objectives are to exchange new research ideas, stimulate accounting study, and advance scholarly and professional understanding of accounting theory and practice from an international perspective. We would like to thank the authors, the discussants, the panelists and all the participants who are contributing to make this symposium a success. Very special thanks go to the University of Cyprus and the Cyprus University of Technology for the generous support to host the symposium. Thank you for coming and have a great symposium! Sincerely, A. Rashad Abdel-khalik Andreas Charitou Panayiotis Theodosiou Symposium Co-chair Symposium Co-chair Symposium Co-chair Professor, Ph.D. Professor, PhD Professor, PhD. V. K. Zimmerman Center Dean, Faculty of Dean, Faculty of University of Illinois Economics and Management Management and Economics USA University of Cyprus Cyprus University of Technology Cyprus Cyprus 6 Symposium Co-chairs Rashad Abdel-Khalik, University of Illinois at Urbana-Champaign Professor A. Rashad Abdel-khalik was born in Egypt, and attended Cairo University (B. Com. Honors); Indiana University (MBA and MA in Economics) and the University of Illinois (Ph.D. in Accountancy). He is the V. K. Zimmerman Professor of International Accounting, Professor of Accountancy and Director of the V. K. Zimmerman Center for International Education and Research in Accounting at the University of Illinois. Prior to joining the Illinois faculty in 2000, he was a Graduate Research Professor at the University of Florida where he worked for 23 years. He also was a faculty member at Columbia University, Duke University and the University of Alberta. Professor Abdel-khalik is the author of Accounting for Risk, Hedging and Complex Contracts (Rutledge, June 2013), a n d h is published work has appeared in The Accounting Review; Journal of Accounting Research; Contemporary Accounting Research; Journal of Accounting, Auditing and Finance; Organization Studies; Accounting, Organization and Society; ABACUS; Journal of Accounting and Public Policy; The International Journal of Accounting and International Journal of Forecasting. He has authored and coauthored several research monographs for the American Accounting Association and the Financial Accounting Standards Board and organized numerous research conferences including the annual Illinois International Accounting Symposium.