US President Donald Trump is advocating for changes to reporting requirements for public companies, seeking to replace the current quarterly earnings reports with a semi-annual schedule. In a recent post on Truth Social, he emphasized that less frequent reporting would reduce costs and enable managers to focus on running their companies more effectively.
Supporters of this proposal argue that it could enhance the number of publicly traded companies in the United States, potentially reversing a declining trend in recent years. However, such a change raises concerns among investors who depend on regular financial disclosures for transparency in the market. Since 1970, public companies in the US have been mandated to report their earnings every three months, and any attempts to reduce this frequency may encounter pushback from shareholders and critics who believe it could jeopardize market clarity and increase volatility.
Trump had previously called for semi-annual reporting during his initial term, although that initiative did not advance. Current SEC leadership, including chair Paul Atkins, has voiced critique regarding reporting obligations they consider burdensome. The SEC has not provided immediate commentary on Trump’s renewed proposal.
Adding to the momentum, the Long-Term Stock Exchange announced its intent to petition the SEC for permission to implement biannual reporting, as reported by the Wall Street Journal. Influential figures like Warren Buffett and JPMorgan Chase CEO Jamie Dimon have expressed skepticism about quarterly financial guidance, suggesting that a focus on short-term results may detract from long-term business strategies.
Trump also referenced China’s reporting practices, indicating they are more favorable to businesses compared to those in the US. He pointed out that China’s management approach takes a longer-term view, contrasting it with the quarterly focus prevalent in the US. Adopting semi-annual reporting would align the US more closely with practices observed in the UK and some European Union countries.
Source: https://www.bbc.com/news/articles/cm2zye8745do?at_medium=RSS&at_campaign=rss