Trump Calls On SEC to Study Ending Quarterly Reporting

Donald Trump

Donald Trump

Trump said in a Twitter post. "So we're looking at that very very curiously, we're looking at twice a year instead of four times a year".

Kevin Lamarque/ReutersU.S. President Donald Trump hosts a meeting with business leaders in the Roosevelt Room of the White House in Washington January 23, 2017. Still, Clayton hasn't floated reducing the number of times that companies must disclose their financial performance each year. "Most agree that a short-term-only view can inhibit long-term strategy and, thus, long-term investment and value creation", she said.

It's a move that would benefit businesses and workers, the president said. It's rare for presidents to make public demands of such regulators.

Companies that want to move away from short-term scrutiny should instead stop publicly projecting the next quarter's earnings, Pozen added.

The President has highlighted a key consideration for American companies and, importantly, American investors and their families - encouraging long-term investment in our country. "And so they don't do it, because the definition of being a successful business is narrowed to what your quarterly earnings reports are".

Billionaire investor Warren Buffett and JPMorgan Chase & Co Chief Executive Jamie Dimon wrote in the Wall Street Journal in June that US companies should move away from giving quarterly guidance, arguing it holds back spending on hiring, investment and research, but did not call for an end to quarterly reporting.

Worst floods in a century kill at least 324 in India's Kerala
Mobile phone operators have been offering free data and SMS messages across Kerala since Saturday to assist with distress calls. In a tweet, he said that more than 314,000 people were now living in more than 2,000 emergency relief camps set up in the area.

But Trump's proposal goes much further, worrying shareholder advocates who have been calling on corporations to disclose more information, not less. Others said that the prospect of fewer financial reports could exacerbate price swings around earnings or fuel insider trading. "Investors need timely, accurate financial information to make informed investment decisions". One provision of the bill includes a requirement that the SEC review the quarterly reporting requirement.

Trump "was a CEO, and managers are never wild about the constant reporting".

If a company struggles to meet quarterly profit expectations or executives feel pressured to manipulate results to reach Wall Street expectations, that reflects poor management and communication, Elson said. Without quarterly financial reports, investors could be blind to important risk factors that could damage their portfolios.

"You have such a long dark period where there is no information going out to the public", Pozen said.

Some investors on Friday said quarterly disclosures were essential to making informed investment decisions and supported richer US valuations, and that shares could become more volatile if companies report only twice yearly.

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