President Trump Wants Fewer Earnings Reports. Would Investors Win or Lose?

Core Viewpoint - The SEC may consider changing the reporting requirement for publicly-traded companies from quarterly to semiannual, following President Trump's advocacy for this change [1][2][3]. Group 1: Proposed Changes - Trump is pushing for the SEC to alter the reporting frequency to every six months, arguing it would save costs and allow management to focus on running their companies effectively [2][3]. - The SEC is reportedly prioritizing Trump's suggestion, although it remains uncertain if the change will be implemented [3]. Group 2: Benefits of Semiannual Reporting - Reducing the frequency of earnings reports could lower compliance costs for companies, as they currently must file a 10-K annually and a 10-Q quarterly, which involves significant time and financial resources [5]. - A shift to semiannual reporting may alleviate the pressure on company leadership to meet short-term expectations, potentially fostering a long-term strategic focus [6][8]. - The change could encourage more privately-held companies to go public, as the current reporting requirements are seen as a major drawback [7]. Group 3: International Context - In contrast to the U.S., companies in the UK and EU are only required to report earnings twice a year, suggesting that semiannual reporting is a common practice in other markets [2][8].