Why Trump wants companies to report earnings less frequently
7 hours ago
- #Financial Regulation
- #Corporate Governance
- #Market Transparency
- Public companies currently report earnings quarterly, a practice mandated since 1970 by the SEC.
- Executives argue quarterly reporting is costly, labor-intensive, and promotes short-term thinking over long-term strategy.
- President Trump advocates for semi-annual reporting, claiming it would save money and allow better long-term management.
- Critics warn less frequent reporting could reduce transparency, increase fraud risks, and lead to market volatility.
- Investor advocates and finance experts emphasize the importance of frequent disclosures for market integrity and investor confidence.
- The SEC has not yet acted on similar past proposals but states it will 'prioritize' Trump's current suggestion.
- Any change to reporting frequency would require extensive debate and consultation, delaying implementation.