Trump Says Wall Street Should Ditch Quarterly Earnings: What Would That Mean?

Core Viewpoint - The potential shift from quarterly to semi-annual earnings reporting for US public companies has been suggested by President Donald Trump, with analysts estimating a 60% chance of this change occurring if approved by the SEC [1][2]. Historical Context - The SEC mandated semi-annual reporting for US publicly traded companies in 1955, transitioning to quarterly reporting in 1970 to enhance transparency following significant corporate failures [2]. - The tightening of reporting standards occurred again in 2002 after the Enron scandal, requiring CEO and CFO sign-offs on quarterly reports [2]. Arguments For and Against - Proponents of quarterly reporting argue that it provides investors with timely information, enabling better decision-making and maintaining a level playing field between investors and insiders [3]. - Critics, including Trump and others, advocate for a focus on long-term strategies, suggesting that quarterly reporting can misalign with long-term business cycles and investor goals [3]. - A compromise proposed by Warren Buffett and Jamie Dimon suggests maintaining quarterly reports while eliminating mandatory quarterly profit forecasts, which may pressure companies to limit investments in growth areas [3].