: Policy Implications of Recent Empirical Studies by Show-Mao Chen　NYSE Working Paper #92-06　　 Abstract 　This paper sketches a framework for formulating policy in the area of U.S.financial reporting requirements for private foreign issuers, specificallythe requirement that financial reports by foreign issuers be reconciled(i.e. restated in accordance) with U.S. Generally Accepted AccountingPrinciples ("U.S. GAAP"). The framework identifies three policyalternatives and broadly evaluates them on the basis of three policyconsiderations. 　The paper then draws on recent empirical studies to address the pivotalconcern of protecting U.S. investors -- the most important policyconsideration and the most commonly cited reason against reforming presentfinancial reporting requirements for foreign issuers. While they employdiverse research methodologies, the empirical studies are uniform inconducting that such the reconciliation of accounting information is oflittle use to U.S. investors, and hence affords them little protection.