Theodore Sougiannis

PERSONAL:

Born: Athens, Greece, September 27, 1954.
United States Citizen.

WORK ADDRESS:

Department of Accountancy
College of Commerce and Business Administration
University of Illinois at Urbana-Champaign
360 Wohlers Hall
1206 South Sixth Street
Champaign, IL 61820
(217) 244-0555
e-mail address: sougiani@uiuc.edu

HOME ADDRESS:

2505 Bedford Drive
Champaign, IL 61820.
(217) 398-8463

Curriculum Vita

September 2005

EDUCATION:

Ph.D. Business Administration (Accounting) - University of California at Berkeley, 1990.
Masters in Business Administration (Finance) - York University, Toronto, 1986.
Master of Arts (Economics) - York University, Toronto, 1984.
Bachelor of Business Administration (Accounting) - University of Pireaus, Greece, 1977.

DISSERTATION:

"The Valuation of R&D Firms and the Accounting Rules for R&D Costs."

JOURNAL ARTICLES:

"R&D Reporting Biases and their Consequences," with Baruch Lev and Bharat Sarath.
Forthcoming at Contemporary Accounting Research.
"The Accrual Effect on Future Earnings," with Konan Chan and Narasimhan Jegadeesh. [2004]
Review of Quantitative Finance and Accounting, 22; 97-121.
"Do Financial Analysts Get Intangibles?" with Eli Amir and Baruch Lev. [2003] European
Accounting Review, 12:4, 635-659.
"Greece in the European Union: policy lessons from two decades of membership," with Elisabeth
Oltheten and George Pinteris. [Winter 2003] The Quarterly Review of Economics and
Finance, 43; 774-806.
"Using Forecasts of Earnings to Simultaneously Estimate Growth and the Rate of Return on Equity
Investment," with Peter Easton, Gary Taylor, and Pervin Shroff. [June 2002] Journal of
Accounting Research, 40; 657-676.
"The Stock Market Valuation of Research and Development Expenditures," with Louis Chan and
Josef Lakonishok). NBER working Paper 7223. [Dec 2001] Journal of Finance, 56; 2431-2456.
"The Accuracy and Bias of Equity Values Inferred from Analysts' Earnings Forecasts," with Takashi
Yaekura). [Fall 2001] Journal of Accounting, Auditing and Finance, 16; 331-362.
"Analysts' Interpretation and Investors' Valuation of Tax Carryforwards," with Eli Amir. [Spring
1999] Contemporary Accounting Research, 16; 1-33.
"Penetrating the Book-to-Market Black Box: The R&D Effect," with Baruch Lev. [April/May 1999]
Journal of Business Finance and Accounting, 26; 419-449.
"A comparison of Dividend, Cash Flow, and Earnings Approaches to Equity Valuation," with
Stephen Penman. [Fall 1998] Contemporary Accounting Research, 15; 343-383. One of the
"Top Ten All Time Hits" in http://papers.ssrn.com/
"The Cyclical Valuation of Catastrophic Losses in the Insurance Industry," [1997] Journal of
Financial Statement Analysis, 3; 32-43.
"The Dividend Displacement Property and the Substitution of Anticipated Earnings for Dividends in
Equity Valuation," with Stephen Penman. [1997] The Accounting Review, 72; 1-21.
"Recent Advances in Inflation Accounting and their Implications for the Multinational Corporation,"
[September/October 1997] Corporate Finance Review, 2; 12-19.
"The Capitalization, Amortization, and Value Relevance of R&D," with Baruch Lev. [1996] Journal
of Accounting and Economics 21; 107-138. Best Paper Award in 1997 from the Financial
Reporting Section of the American Accounting Association.
"The Accounting Based Valuation of Corporate R&D," [1994] The Accounting Review, 69; 44-68.
"Causality Between Money and the Index of Industrial Production in the Greek Economy," [1985]
Spoudai: Quarterly Economic Journal (Greece) 35; 94-103.

DISCUSSIONS AND CHAPTERS IN BOOKS

Discussion: “Market Reaction to Proposed Changes in Accounting for Purchased Research and
Development in R&D Intensive Industries” [Fall 2004] Journal of Accounting, Auditing
and Finance, 19:4; 429-433.
“R&D and Intangibles” Blackwell Encyclopedia of Accounting, 2nd Edition (forthcoming).
"The Sarbanes-Oxley Act of 2002 as a Response to Corporate Scandals: Analysis, Criticism and
Implications for the International Market," (in Greek) with Elisabeth Oltheten. [March
2004]. Economic Mailman (Greek economic periodical).
OTHER WORKING PAPERS:
"The Relevance of Quantifiable Auditor Qualifications in the Valuation of IPOs," with Dimitrios
Ghikas and Afroditi Papadaki. Submitted to the European Accounting Review.
"The Impairment of Auditor Credibility: Stock Market Evidence from the Enron-Andersen
Saga," with Rajib Doogar and Hong Xie. Under revision for resubmission to the Journal
of Accounting Research.
"Liability/Equity Classification Decisions and Shareholder Valuation," with Tom Linsmeier and
Cathy Shakespeare. Being prepared for submission to the Accounting Review.
“Accounting Estimates: Pervasive, Yet of Questionable Usefulness” with Baruch Lev and Siyi Li.
Under revision.
“An Evaluation of SFAS No. 130 Comprehensive Income Disclosures,” with Dennis Chambers,
Tom Linsmeier and Cathy Shakespeare. Under revision for resubmission to the Review of
Accounting Studies. Presented at the 2005 American Accounting Association meetings.
"Do Accounting Earnings or Free Cash Flows Provide a Better Estimate of a Stock's Value?"
with James Gentry and David Whitford.

RESEARCH IN PROGRESS:

"The Stock Market Valuation of Capital Expenditures," with Louis Chan and Josef Lakonishok.
“An Evaluation of the Use of a Second Auditor in IPOs?" with Dimitrios Ghikas.
“The Information Content and Pricing of Cash Flow and Accrual Changes,” with Ying Cao,
James Myers and Linda Myers.
“Predicting the Return on Operating Assets,” with Louis Chan and Josef Lakonishok.
“Detecting Earnings Smoothing and Earnings Management,” with Siyi Li and Joshua Ronen.

CASE STUDIES:

"Titan Cement Company S.A." 2001, (with Elisabeth Oltheten). The Athens Laboratory of Business
Administration (ALBA).

REFEREED CONFERENCE PRESENTATIONS:

"R&D Reporting Biases and their Consequences” presented at the Multinational Finance Society
conference, July 2005.
“An Evaluation of SFAS No. 130 Comprehensive Income Disclosures,” presented at the 2005
American Accounting Association meetings.
“Accounting Estimates: Pervasive, Yet of Questionable Usefulness” presented at the London
Business School 2004 summer conference on financial reporting, the 2004 joint Columbia
University-NYU accounting research conference, and the 2004 Washington University –
Saint Louis accounting research mini-conference.
"Liability/Equity Classification Decisions and Shareholder Valuation," European Accounting
Association (EAA) annual meetings, Athens, Greece, April 2001.
"The Accuracy and Bias of Equity Values Inferred from Analysts' Earnings Forecasts." Journal of
Accounting, Auditing and Finance conference, New Jersey, August 2000. Sixteenth Annual
International Symposium on Forecasting, Istanbul, Turkey, June 1996.
"Estimating the Cost of Capital Using Forecasts of Profitability? (now titled "Using Forecasts of
Earnings to Simultaneously Estimate Growth and the Rate of Return on Equity
Investment," European Financial Management Association (EFMA) annual meetings,
Athens, Greece, June 2000.
"What Value Analysts?" (now titled "Do Financial Analysts Get Intangibles?"), American
Accounting Association annual meetings, San Diego, California, 1999. Canadian Academic
Accounting Association annual meetings, Halifax, Nova Scotia, 2000.
"R&D Reporting Biases and their Consequences". Second Intangibles Conference, NYU, New
York, May 1999.
"The Stock Market Valuation of Research and Development Expenditures". National Bureau of
Economic Research (NBER), Behavioral Finance Meetings, University of Chicago, October
1998. Accounting Association of Australia and New Zealand annual conference, Cairns,
Australia, July 1999. American Accounting Association annual meetings, San Diego,
California, 1999. Third Annual Conference on Contemporary Issues in Capital Markets,
University of Cyprus, September 2000.
"Analysts' Interpretation and Investors' Valuation of Tax Carryforwards". Contemporary Accounting
Research conference, Toronto, Canada, November 1997. Hong Kong University of Science
and technology, 1999 Summer Symposium on Accounting Research. Hong Kong, June
1999.
"Penetrating the Book-to-Market Black Box: The R&D Effect". Third International Conference on
Contemporary Accounting Issues, Taipei, Taiwan, July 1996.
"A Comparison of Dividend, Cash Flow, and Earnings Approaches to Equity Valuation". American
Accounting Association annual meetings, Orlando, Florida, August 1995. Midwest Finance
Association annual meetings, Cincinnati, Ohio, March 1995. The 37th annual conference of
the Western Social Science Association (Finance & Business), Oakland, California, April
1995. The European Finance Association meetings, Milan, Italy, August 1995.
"The Substitution of Anticipated Earnings for Dividends in Equity Valuation". American
Accounting Association annual meetings, San Francisco, California 1993.
"The Capitalization, Amortization, and Value Relevance of R&D". American Accounting
Association annual meetings, Washington, D.C., 1992.
"The Accounting Based Valuation of Corporate R&D", Third Annual Conference on Financial
Economics and Accounting, New York, 1992.

OTHER CONFERENCE PARTICIPATION:

Invited Participant, London Business School and Journal of Accounting Research, Conference on
International Financial Reporting Standards, London, July 2005.
Discussant, Multinational Finance Society conference, Athens, Greece, July 2005.
Invited Participant, Federation of Schools of Accounting and Delloitte and Touche conference on,
Risk Management in a Sarbanes-Oxley Era, Chicago, 2005.
Invited Speaker, Bocconi University 2004 conference on “Sustainability, Financial Performance,
and Market Valuation,” Milan, Italy. Theme of speech: “The Market Value of R&D: An
Application to Telecommunication Companies.”
Invited Discussant, International Journal of Accounting and Athens University of Economics and
Business, Conference in International Accounting issues, Athens-Greece, 2004.
Invited Participant, Contemporary Accounting Research Conference, Montreal, Canada, 2004.
Invited Participant, Review of Accounting Studies Conference, University of Notre Dame, 2004.
Invited Discussant, Journal of Accounting, Auditing and Finance Conference, Stern School of
Business, New York University, 2004.
Invited Participant, Contemporary Accounting Research Conference, Toronto, Canada, 2003.
Invited Participant, KPMG Faculty Symposium, Chicago, August 2002.
Invited Participant, KPMG & UIUC Business Measurement Research Program Workshop, San
Antonio, August 2002.
Invited Participant, Financial Statement Analysis Conference, University of Southern California,
February 2002.
Invited Participant, Contemporary Accounting Research Conference, Waterloo, Canada, 2003.
Member of the scientific committee, European Accounting Association (EAA) annual meetings,
Athens, Greece, April 2001.
Member of the organizing committee, Accounting and Auditing in the New Economy, KPMG LLP
sponsored presentation, Athens, Greece, December 2000.
Arthur Andersen conference on Common Accounting Standards in the European Union, The Effects
on the Capital Market and the Hellenic Enterprises, Athens, Greece, December 2000.
Invited Participant, Burton Workshop, Columbia University, October 2000. Presented "The
Incremental Value of Analysts' Earnings Forecasts in Explaining Stock Returns."
Panelist, Third Annual Conference On Contemporary Issues in Capital Markets, University of
Cyprus, September 2000.
Session Chair, Third Annual Conference On Contemporary Issues in Capital Markets, University of
Cyprus, September 2000.
Session Chair, European Financial Management Association (EFMA) annual meetings, Athens,
Greece, June 2000.
Discussant, European Financial Management Association (EFMA) annual meetings, Athens,
Greece, June 2000.
Member of the organizing committee, European Financial Management Association (EFMA)
annual meetings, Athens, Greece, June 2000.
Discussant, Accounting Association of Australia and New Zealand annual conference, Cairns,
Australia, July 1999.
Journal of Accounting Research Conference, University of Chicago, May 1998.
AAA\FASB Financial Reporting Research Conference, University of Michigan, December 1995.
AAA\FASB Financial Reporting Research Conference, Northwestern University, December 1994.
BIG-10 Doctoral Consortium, Minneapolis, MN., May 1994.
AAA/Deloitte & Touche Trueblood Seminar for Professors, Scottsdale, AZ., January 1994.
AAA/FASB Financial Reporting Research Conference, Harvard University, December 1992.
AAA New Faculty Consortium, St. Charles, IL., February 1991.
PAC-10 Doctoral Consortium, Tempe, AZ., February 1990.
AAA Doctoral Consortium, Lake Tahoe, CA., June 1988.

RESEARCH AND TEACHING AWARDS:

KPMG Peat Marwick Fellow, University of Illinois, 2001 -.
Raymond A. Hoffman faculty award, Department of accountancy, University of Illinois, 2002.
Weldon Powell Fellow, University of Illinois, 1998 - 2001.
Athens Laboratory of Business Administration (ALBA). Outstanding Research Award - 2001.
University of Illinois-1999 St. Louis Accountancy Committee Excellence in Teaching Award.
American Accounting Association, Financial Reporting Section, Best Paper Award in 1997 for
"The Capitalization, Amortization, and Value Relevance of R&D", [1996] Journal of
Accounting and Economics 21; 107-138, (with Baruch Lev).
University of Illinois-Incomplete List of Teachers Ranked as Excellent by their Students: Spring
1997, Fall 1997, Spring 1998, and Spring 1999.
University of Illinois Research Board Awards in 1991, 1992, 1998 and 1999.
University of Illinois Center for International Education and Research in Accounting Award, 1998.
University of Illinois Center for International Business Education and Research Awards in 1996 and
1999.
University of Illinois Bureau of Economic and Business Research Award, 1994.
Ernst & Young Doctoral Dissertation Fellowship, 1989 - 1990.
Social Sciences and Humanities Research Council of Canada Doctoral Fellowship, 1987 - 1989.
Drum Scholarship and Flood Fellowship, University of California at Berkeley, 1986 - 1987.
Graduate Scholarship, York University, 1982-1986
.
TEACHING AND PROFESSIONAL EXPERIENCE:

University of Illinois at Urbana-Champaign. Professor of Accountancy, College of Business.
University of Illinois at Urbana-Champaign. Associate Professor of Accountancy, College of
Business. 1998 – 2004.
Athens Laboratory of Business Administration (ALBA). Visiting Professor of Accounting. 2000-
2001. Course taught: Core MBA course in Financial Reporting and Taxation, Core MBA
course in Management Accounting.
University of Warsaw. International Management Center. Visiting Professor of Accounting. October
1999 and 2000, and January 2002. Course taught: Core MBA course in Financial
Accounting.
University of Illinois at Urbana-Champaign. Assistant Professor of Accountancy, College of
Business. 1990 - 1998.
Courses taught:
Undergraduate program: Intermediate Financial Accounting,
Accounting Institutions and Regulation
Masters program: Methods and Practices in Professional Accounting Research,
Risk Management and Accounting Measurement
Doctoral program: Ph.D. Seminar in Financial Economics Applied to
Accounting
University of California at Berkeley, Haas School of Business. Visiting Assistant Professor, Spring
1996.
Courses taught: Managerial Accounting.
University of California at Berkeley. Instructor, Haas School of Business. 1989 - 1990.
Courses taught: Introduction to Managerial Accounting.
University of California at Berkeley. Research Assistant. 1987-1989.
York University, Toronto. Instructor, Department of Economics. 1984 - 1986.
Courses taught: Introduction to Statistics,
Microeconomic Principles,
Macroeconomic Principles.
York University, Toronto. Teaching/Research Assistant. 1982-1984.
Texaco, Athens, Greece. Accountant. 1979 - 1981. Internal Auditing, inventory accounting, and
inter-company accounting.

BUSINESS PRESS CITATIONS:

Research results from various studies have been cited in business press publications such as The
Economist, Fortune, Business Week, Bloomberg Personal Finance, Smart Money Magazine,
CFO Magazine, and The New York Times.

SERVICE:

EDITORIAL:

Board Member, The Accounting Review
Contemporary Accounting Research,
International Journal of Accounting
Journal of Accounting, Auditing and Finance
Journal of Accounting and Public Policy
Review of Accounting Studies
Ad Hoc Reviewer, The Accounting Review,
Accounting Horizons,
Advances in International Accounting,
Journal of Accounting Research,
Journal of Accounting Literature,
Contemporary Accounting Research,
Journal of Accounting, Auditing and Finance,
Journal of Accounting and Public Policy,
Journal of Business,
Journal of Finance,
Journal of Financial Research,
Journal of Multinational Financial Management,
American Accounting Association annual and regional meetings,
Canadian Accounting Association annual meetings,
European Accounting Association annual meetings,
The European Accounting Review
European Financial Management
European Financial Management Association annual meetings,
Financial Management,
International Journal of Accounting,
Management Science,
Pacific Accounting Review,
Quarterly Review of Economics and Finance
Review of Accounting Studies,
Review of Accounting and Finance,
Review of Financial Studies,
Review of Industrial Organization,
Social Sciences and Humanities Research Council of Canada,
University of Illinois Research Board,
University of Illinois Auditing Symposium,
University of Illinois Tax Symposium,
University of Southern California -AAA/KPMG International
Research Conference
Reviewer for the textbook, Financial Statement Analysis and
Security Valuation by Stephen Penman, McGraw-Hill/Irwin, 2001.

DISSERTATION COMMITTEES:

Konan Chan (UIUC - Department of Finance)
Jong-Hag Choi (Director of Research)
Joe Comprix (Director of Research)
Keejae Hong
Adel Ibrahim (Chairman)
Tony Kang (Chairman)
Moonchul Kim
Sangwoo Lee (UIUC – Department of Finance)
Taehee Lee
Deanna Lee (Director of Research)
Karl Muller
Michael Oleson
Gyung Paik (Chairman)
Cathy Shakespeare
Vernon Richardson
Dean Smith (External member - University of Waterloo, Canada)
Takashi Yaekura (Director of Research)

COLLEGE/DEPARTMENT COMMITTEES:

College Executive Committee
Department Advisory Committee
Department Promotion and Tenure Committee
Department Academic Integrity Committee
Department Human Subjects Committee
Department Ph.D. Program Committee
Interim Ph.D. Program Director
Department Recruiting Committee
Office of Accounting Research Committee
College Educational Policy Committee (Chairman)
CIBER Evaluation Committee
Strategic planning - People Task Force
Professional Programs Committee
Bylaws Committee

PROFESSIONAL AFFILIATIONS:

American Accounting Association
American Finance Association
Canadian Academic Accounting Association

PRESENTATIONS AT ACADEMIC INSTITUTIONS:

Boston University, 2004.
Columbia University, 1994, 2000.
Florida State University, 2003.
George Washington University, 1997.
Harvard University, 1990, 1997.
Indiana University, 1994.
INSEAD, 2000.
London Business School 2000.
MIT, 1990.
Michigan State University, 1998.
New York University, 1990.
Northwestern University, 1997.
Ohio State University, 1995, 1998.
Penn State University, 1995.
Purdue University, 1999.
SUNY at Buffalo, 1993, 1995.
Tel Aviv University, 2000.
Tulane University, 1990, 2002.
University of Alberta, 1999.
University of Arizona, 1990.
University of British Columbia, 1990.
University of California at Berkeley, 1990, 1993, 1996.
University of California at Davis, 1990.
University of Cincinnati, 2003.
University of Florida, 1990.
University of Houston, 2004.
University of Illinois at Chicago 2003.
University of Kentucky, 2003.
University of Maryland, 1990.
University of Michigan, 1995, 1999.
University of Notre Dame, 1996.
University of Pennsylvania, 1990.
University of Texas at Dallas, 2005.
University of Waterloo, 1993.
Washington University, 1991, 1995.