WASHINGTON: US President Donald Trump has called for publicly listed American companies to stop reporting earnings quarterly and shift to a half-yearly system instead.
Trump stated that companies should report on a six-month basis rather than quarterly, pending approval from the Securities and Exchange Commission.
He posted on his Truth Social platform that this change would allow managers to focus on properly running their companies.
The SEC has mandated quarterly reporting since 1970, but the debate over switching to a six-month system is not new.
Such a shift would align the United States with the European Union and United Kingdom, though many large EU firms still report quarterly.
Trump also proposed this move during his first term, with proponents arguing it helps managers prioritise long-term growth over short-term targets.
An SEC spokesperson confirmed that Chairman Paul Atkins is prioritising the proposal to reduce regulatory burdens on companies.
Sam Stovall of CFRA Research said moving to semiannual reporting would allow firms to dedicate fewer resources to the process.
Stovall noted that it could help companies save money but might increase market volatility due to less frequent guidance.
He cautioned that reduced reporting frequency could lead to fewer expectation resets and more uncertainty for investors. – AFP