Response to the Discussion of "The Effect on Financial Reporting Quality of an Exemption From the SEC Reporting Requirements for Foreign Private Issuers"

We appreciate the thorough discussion provided by Professor Yuan Ding. His comments raise legitimate issues. In this response, we offer clarifications and suggest avenues for future research. Our response follows the structure of the discussant’s paper and elaborates on each point separately.

The Effect on Financial Reporting Quality of an Exemption From the SEC Reporting Requirements for Foreign Private Issuers

We test for differences in financial reporting quality between companies that are required to file periodically with the SEC and those that are exempted from filing reports with the SEC under Rule 12g3-2(b). We examine three earnings quality measures: conservatism, abnormal accruals, and the predictability of earnings. Our results, for all three measures, show different financial reporting quality for companies that file with the SEC than for companies exempt from filing requirements. This paper provides empirical evidence of a link between filing with the SEC and financial reporting quality for foreign firms.

Soils on the global agenda. Developing international mechanisms for sustainable land management

The objective of the report is to contribute towards developing international mechanisms for SLM. The report provides an overview of international actions concerned with sustainable land management, based on contributions from members of the IASUS (International Actions for the Sustainable Use of Soil) network made at the Eurosoil Symposium. It also aims to concretise possible follow-up actions. On the occasion of the ISRIC workshop “World Soils Issues and Sustainable Development” held on 10 March 2006, the creation of a World Soils Council (WSC) was initiated. The report presents in its final chapter the WSC’s proposed vision, objectives, and structure.