Why the SEC Wants to End Quarterly Earnings Reports

Core Viewpoint - The SEC Chairman Paul Atkins proposed ending quarterly earnings reports, suggesting that this change could reduce costs for companies and allow them to focus more on operations, reflecting a deregulatory approach under the current administration [2][3]. Group 1: Proposal and Rationale - The proposal to eliminate quarterly earnings reports follows a statement from President Trump advocating for biannual reporting, indicating a shift in regulatory philosophy [2]. - Atkins argues that quarterly reporting has become outdated since it was established in 1970, and cites that other countries already permit less frequent disclosures [3]. Group 2: Potential Implications - Experts warn that moving to semi-annual reporting could create volatility in the market, as investors may miss important developments that occur quarterly [4]. - The change could also limit corporate executives' trading windows, potentially leading to longer periods of holding non-public information, which raises concerns about market integrity [5]. Group 3: Support for Current Reporting Practices - Notable figures like Warren Buffett and Jamie Dimon have expressed support for quarterly reports, emphasizing their importance in maintaining transparency in public markets [4]. - Research indicates that stock prices are closely tied to earnings reports, suggesting that these disclosures play a critical role in informing investors and driving valuations [7].