Teaching ExcellenceIn 1986, Maryland accounting alumnus (class of 1954) Allen J. Krowe established The Krowe Teaching Excellence Awards in the Smith School to recognize and promote excellence in teaching and reward innovation in the classroom. These awards are given to the Smith School’s very best instructors in May of each year. The school’s Teaching Enhancement Committee selects award winners based on nominations and teaching evaluations.

In May of 2016, for the 30th anniversary of the Awards, Allen Krowe returned to the Smith School. He joined Dean Alex Triantis in presenting the 2016 Awards and celebrated the anniversary at a lunch with current and past Krowe Award winners. In 2016, Drs. Gary Bulmash and Michael Kimbrough received Krowe Awards for Teaching Excellence. Dr. Bulmash is also a past Krowe Award winner and Dr. Kimbrough joins a long list of AIA faculty having won one or more

Krowe Awards. During this year’s award presentation, Krowe commended the recipients and recalled the profound effect his teachers had on him during his time at Maryland. “They changed my life. You are changing lives.” he said.

About Allen Krowe

After graduating from Maryland in 1954 as an accounting major, Krowe entered the U.S. Air Force and served as a fighter pilot. In 1958, he joined Touche Ross (which later merged with Deloitte Haskins & Sells to become Deloitte & Touche, and is now known simply as Deloitte). Allen worked there until 1960 when he began his career at IBM, where he eventually became chief financial officer, senior vice president and director. After becoming an executive vice president in 1988, he was recruited by Texaco to become senior vice president and chief financial officer, a post he continued to hold until his retirement on July 1, 1997. Krowe received the University of Maryland’s Distinguished Alumnus Award in 1986 and was named the business school’s Alumnus of the Year in 1988.

AIA FACULTY RECOGNIZED WITH SMITH SCHOOL’S MOST PRESTIGIOUS TEACHING AWARD

TWO PACESETTERS

Buckle Up and Let's Go for a Ride!

AIA Advisory Board Member and former National Aquarium CFO and EY Partner Bruce Hoffberger (BS Accounting '71) shown with his 1967 Camaro Indy 500 Pace Car. Bruce has owned this car for 50 years and now has fun with it at shows around the country. The car and Bruce spent four years in College Park before they drove off to Miami in 1971. Whoever said that accountants were boring?

Pictured above: Alan Krowe with AIA’s Krowe Teaching Award Winners, from left: Stephen Loeb, James McKinney, Nick Seybert, Progyan Basu, Allen Krowe, Lawrence Gordon, Gary Bulmash, Eugene Cantor, Sandra Rose, Michael Kimbrough, and Rebecca HannAIA Professor Part of Campus’

MAGIC Initiative

Cybersecurity Initiative

UMD’s Provost and Sr. VP, Dr. Mary Ann Rankin, launched a new campus-wide interdisciplinary initiative on cybersecurity. Recognizing the work done by AIA faculty in the area of cybersecurity, Provost Rankin tapped AIA Professor Lawrence A. Gordon to be a member of the Advisory Board for the new Maryland Global Initiative for Cybersecurity (MAGIC). The mission of MAGIC includes coordinating and extending UMD’s existing leadership role in the area of cybersecurity.

Following a 47-year career at the University of Maryland, EY Alumni Professor of Accounting and Business Ethics Stephen E. Loeb, a pioneer in accounting ethics research and education, will retire after the Spring 2017 semester.

“Steve's contributions to accounting and business are the stuff of legend,” says Smith School Clinical Professor Charles E. Olson, who met Loeb 53 years ago when their PhD programs overlapped at the University of Wisconsin-Madison. Loeb rose from assistant professor to full professor in six years, served twice as accounting department chair, taught all levels of courses in all programs, mentored PhD students and was a leader in launching the school’s Business Ethics Experiential Learning Module, which put full-time MBA students inside federal prisons to meet white-collar criminals.

“He pioneered Smith's prison trip and implemented it with passion,” Olson says. Olson notes that Steve was the key

faculty member in the development of the Smith Master of Science in Accounting (MSA) program.

The MSA is where Loeb sees the future of accounting education. “I’m really proud of that program,” says Loeb. “I was involved with the MSA program from day one, and we’re now recruiting for our 12th cohort.”

Ethics Education

Ethics became a research interest of Loeb at the University of Wisconsin-Madison, where he combined sociology and accounting after taking a course in social control. A dissertation on accounting ethics led to a 1971 Journal of Accounting Research paper and other publications, including a 1988 Issues in Accounting Education paper receiving more than 200 citations.

Loeb has worked to bring ethics into the mainstream of accounting education. As a result of his suggestion, Maryland

became the first state to require an ethics course before applicants may take the CPA exam. In 2010, Steve received the Public Interest Section of the American Accounting Association’s Accounting Exemplar Award “for his notable contributions to professionalism and ethics in accounting education.”

Teaching Innovation

Loeb was an early proponent of the use of active learning in accounting education. “When I first came here, I was almost pure lecturer,” he says. “But I’ve changed.”

Gradually he started bringing role-plays, simulations, guest speakers and interactive projects into the classroom. “I try to stimulate creative and critical thinking.” Loeb says. He included many teaching innovations in the Business Ethics Experiential Learning Module, which he led from 1996 to 2007.

A Legacy Lives On

Giving BackMark Manoff ’78 has always been an active alumnus. Whether it’s serving on the Maryland in Manhattan Committee, chairing the Smith School’s Advisory Board, or speaking to graduates at commencement, Mark is a true Terp. So this year, looking down from his EY office on the 18th floor above Times Square, Mark chose to support the department that so ably prepared him for his career.

“The education I received from Smith laid the foundation for the career I have today, particularly from the faculty in the accounting department,” says Mark. His gift, along with an additional commitment from EY, created the Manoff Family Endowed Fund for Accounting in support of delivering undergraduate accounting education at the Smith School. The fund also created the Manoff/EY Award for a deserving accounting student.

“The education I received from Smith laid the foundation for the career I have today, particularly from the faculty in the accounting department.”

— Mark Manoff

Steve led the way in bringing ethics into the mainstream of accounting education.

David Reznick ’59 was a passionate supporter of the University of Maryland and the Smith School. Since co-founding his firm, Reznick Group, P.C. (the firm later combined with J. H. Cohn in 2012 to form CohnReznick), in 1977, David helped lead its growth from one office in Washington, DC to a top 20 CPA firm, with offices nationwide.

David understood the importance of giving back and nurturing the next generation. After his passing in late 2014, CohnReznick committed to continuing David’s legacy by supporting the Smith School. Through a generous five-year pledge, the firm established the David Reznick Undergraduate Accounting Scholarship as well as a Faculty Development Fund to provide critical support to accounting faculty members. These gifts in honor and memory of David Reznick will have a positive impact on our students, faculty, and the future of the accounting profession.

Accounting Ethics Pioneer Stephen E. Loeb to Retire

Highlights of AIA faculty publications Shijun Cheng, Augustine Duru, and Yijiang Zhao. 2017. Antitakeover Legislation and Accounting Conservatism: New Evidence. Journal of Accounting and Public Policy, 36(2): 119-140.

Lawrence A. Gordon and Amanda Wilford. 2012. An Analysis of Multiple Consecutive Years of Material Weaknesses in Internal Control. The Accounting Review, 87(6): 2027-2060.

Lawrence A. Gordon, Martin P. Loeb and William Lucyshyn. October 2014. Cybersecurity Investments in the Private Sector: The Role of Governments. The Georgetown Journal of International Affairs.

Lawrence A. Gordon, Martin P. Loeb, William Lucyshyn, and Lei Zhou. 2015. The impact of information sharing on cybersecurity underinvestment: A real options perspective. Journal of Accounting and Public Policy, 34(5): 509-519 (see page 11 of this newsletter).

Lawrence A. Gordon, Martin P. Loeb, William Lucyshyn, and Lei Zhou. 2015. Increasing Cybersecurity Investments in Private Sector Firms. Journal of Cybersecurity.

Rebecca Hann. 2014. A Discussion of ‘Inter-Industry Network Structure and the Cross-Predictability of Earnings and Stock Returns.’ Review of Accounting Studies, 19(3): 1225-1233.

Rebecca Hann, Maria Ogeneva and Oguzhan Ozbas. 2013. Corporate Diversification and the Cost of Capital. Journal of Finance, 68(5): 1961-1999.

Linsey A. Gallo, Rebecca Hann and Congcong Li. 2016. Aggregate earnings surprises, monetary policy, and stock returns. Journal of Accounting & Economics, 62 (1): 103-120, 2016 (see page 10 of this newsletter).

Nicole Jenkins, Michael Kimbrough and Juan Wang. The extent of informational efficiency in the credit default swap market: evidence from post-earnings announcement returns, forthcoming at Review of Quantitative Finance and Accounting. doi: http://dx.doi.org/10.1007/s11156-014-0484-y.

Michael Kimbrough and Isabel Y. Wang. 2104. Are seemingly self-serving attributions in earnings press releases plausible? Empirical Evidence. The Accounting Review, 89 (March 2014): 635-667. doi: http://dx.doi.org/10.2308/accr-50628.

Kimbrough, Michael and Henock Louis. 2011. Voluntary disclosure to influence investor reactions to merger announcements: An examination of conference calls. The Accounting Review, 86: 637-667.

Stephen E. Loeb. 2015. Active Learning: An Advantageous Yet Challenging Approach to Accounting Ethics Instruction. Journal of Business Ethics, 127 (1): 221-230.

Stephen E. Loeb. 2012. Education in Accountancy and Social Control: Questions and Comments. Issues in Accounting Education, 27 (4): 1059-1069.

Saleha Khumawala, Tharindra Ranasinghe and Claire Yan. 2016. Why hedge? Extent, nature, and determinants of derivative usage in US municipalities. Journal of Accounting and Public Policy, 35(3), 303-325.

Sandip Dhole, Saleha Khumawala, Sagarika Mishra, and Tharindra Ranasinghe. 2014. Executive Compensation and Regulation-Imposed Governance: Evidence from the California Nonprofit Integrity Act of 2004. The Accounting Review, 90(2), 443-466.

Emre Kilic, Gerald Lobo, Tharindra Ranasinghe, and Konduru Sivaramakrishnan. 2012. The impact of SFAS 133 on income smoothing by banks through loan loss provisions. The Accounting Review. 88(1), 233-260.

Charles Ham, Mark Lang, Nicholas Seybert, and Sean Wang. 2017. CFO narcissism and financial reporting quality. Journal of Accounting Research (forthcoming).

Lisa Koonce, Nicholas Seybert, and James Smith. 2016. Management speaks, investors listen: are investors too focused on managerial disclosures? Journal of Behavioral Finance. 17(1): 31-44.

Nicholas Seybert. 2016. Experienced executives’ views of the effects of R&D capitalization on reputation-driven real earnings management: a replication of survey data from Seybert (2010). Behavioral Research in Accounting. 28(2): 85-90.

Robert Libby, Kristina Rennekamp, and Nicholas Seybert. 2015. Regulation and the interdependent roles of managers, auditors, and directors in earnings management and accounting choice. Accounting, Organizations, and Society. 47: 25-42.

Kristina Rennekamp, Kathy Rupar, and Nicholas Seybert. 2015. Impaired judgment: the effects of asset impairment reversal and cognitive dissonance on future investment. The Accounting Review. 90(2): 739-759.

Staihar, Jim. 2013. “Punishment as a Costly Signal of Reform,” The Journal of Philosophy. 110: 282-292.

Staihar, Jim. 2015. “Proportionality and Punishment.” Iowa Law Review. 100: 1209-1232.

Green, T.C., Russell Jame, Stanimir Markov, and Subasi, Musa. 2014. Broker-hosted investor conferences. Journal of Accounting and Economics. 58, 142–166.

T. Clifton Green, Russell Jame, Stanimir Markov, and Musa Subasi. 2014. Access to management and the informativeness of analyst research. Journal of Financial Economics. 114, 239-255.

William Cready, Abdullah Kumas, and Musa Subasi. 2014. Are Trade Size-Based Inferences About Traders Reliable? Evidence from Institutional Earnings-Related Trading. Journal of Accounting Research. 52, 877–909.

Ferhat Akbas, Stanimir Markov, Musa Subasi, and Eric Weisbrod. 2017. Determinants and Consequences of Information Processing Delay: Evidence from Thomson Reuters’ Institutional Brokers’ Estimate System. Journal of Financial Economics (forthcoming).

Stanimir Markov, Volkzn Muslu, and Musa Subasi, 2017. Analyst Tipping: Additional Evidence, Journal of Business Finance & Accounting (forthcoming).

Paul Brockman, Musa Subasi, and Cihan Uzmanoglu. 2017. Investor Conferences, Stock Liquidity, and Firm Performance. The Financial Review (forthcoming).

Alex Edmans, Vivian Fang and Emanuel Zur. 2013. The Effect of Liquidity on Governance. Review of Financial Studies. 26(6): 1443-1482.

Carol Marquardt and Emanuel Zur. 2015. The Role of Accruals Quality in the M&A Market. Management Science. 61(3): 604–623.

Masako Darrough, Rong Huang, and Emanuel Zur. The value of SOX 404 in the market for corporate control. Contemporary Accounting Research (forthcoming).

Hagit Levy, Ron Shalev and Emanuel Zur. The effect of CFO personal litigation risk on firm’s disclosure and accounting choices. Contemporary Accounting Research (forthcoming).

Pictured above: Lei Zhou, William Lucyshyn, Lawrence Gordon, Deborah Frincke, Martin Loeb

2016-2017 SMITH ACCOUNTING NEWS 21