President Trump says companies should no longer be forced to report on a quarterly basis

Core Viewpoint - The president proposed changing the frequency of corporate reporting from quarterly to semi-annually, suggesting it would save costs and allow management to focus on long-term strategies [1][5][10]. Group 1: Impact on Companies - Companies may benefit from less frequent reporting, as the current quarterly system pressures them to focus on short-term results rather than long-term growth [3][16]. - The current quarterly reporting system is seen as a hindrance to long-term planning, with executives feeling pressured to deliver results every 90 days [6][16]. - Some companies, like Under Armour, have faced downgrades due to not meeting quarterly expectations, highlighting the brutal nature of quarterly assessments [2][7]. Group 2: Industry Perspectives - There is a debate within the industry about the necessity of quarterly reports, with some arguing that they create a short-term focus detrimental to overall economic health [11][14]. - The average holding period for mutual funds is reportedly less than nine months, indicating a trend towards short-term investment strategies [14]. - The notion of moving to semi-annual reporting has been discussed as a way to alleviate the pressure on companies and allow for more strategic decision-making [5][17]. Group 3: Regulatory Considerations - Any change to the reporting frequency would require approval from the SEC, and there are questions about the feasibility of such a change without legislative action [1][4]. - The discussion around this topic reflects broader concerns about short-termism in the market and its impact on capital allocation [16]. Group 4: CEO and Shareholder Interests - CEOs may prefer less frequent reporting due to the time and resources required for quarterly disclosures, which can detract from operational focus [17]. - Shareholders, on the other hand, may desire more frequent updates to stay informed about company performance [10][14].