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].

Group 1 - President Trump proposed that companies should report earnings semiannually instead of quarterly, suggesting it would save costs and allow managers to focus on long-term strategies [10][22][39] - The debate centers around the balance between reducing the compliance burden for companies and maintaining transparency for investors, with concerns that less frequent reporting could disadvantage individual investors [14][23][42] - Historical context shows that the SEC initially required semiannual reporting in 1955, but shifted to quarterly in 1970, with some European companies allowed to report semiannually in recent years [12][13] Group 2 - Advocates for semiannual reporting argue it could lead to a greater focus on long-term planning and strategy, reducing the pressure of meeting quarterly expectations [40][41] - Critics highlight that less frequent reporting could create larger information gaps, potentially favoring institutional investors over individual ones [15][42] - Research indicates mixed outcomes regarding the impact of reporting frequency on market efficiency and company valuations, with some studies suggesting that more frequent reporting leads to smaller price jumps and cheaper fundraising [16][19] Group 3 - The Long-Term Stock Exchange (LTSE) is expected to petition the SEC regarding this issue, advocating for a focus on long-term investment strategies [17] - Investor groups prioritizing transparency are likely to push back against changes that reduce reporting frequency, emphasizing the need for frequent and comparable data [18][19] - The conversation around reporting frequency is part of a broader discussion on corporate governance and the pressures faced by companies in the current market environment [60][61]

Group 1 - The core proposal is to change the reporting frequency of publicly traded U.S. companies from quarterly to semiannual, which is argued to allow better business management by executives [1] - President Donald Trump has revived this proposal, indicating it is subject to SEC approval [1]