Trump Suggests Dropping Quarterly Financial Reporting
President Donald Trump proposes allowing publicly traded companies to report financial reports twice instead of four times per year.
#economics
President Donald Trump proposes allowing publicly traded companies to report financial reports twice instead of four times per year.
Trump has asked the U.S. Securities and Exchange Commission, which has required quarterly reporting since 1970, to review the suggestion. The SEC is an independent entity guided by a bipartisan commission.
Many public companies in Europe already report only twice per year, depending upon the rules of the exchanges where their stocks are listed.
Proponents say that dropping quarterly reporting would save money, reduce red tape and thereby encourage small companies to become listed. Such a move also would eliminate the short-sighted corporate planning fostered by the need to deliver relentlessly positive financial results every three months.
Opponents argue that semi-annual reporting would leave investors less informed and could make markets more volatile.
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