Published: Sat, August 18, 2018
Business | By Tara Barton

Trump sets wheels in motion to abolish quarterly reporting rule

Trump sets wheels in motion to abolish quarterly reporting rule

That would allow greater flexibility & save money. He added that he has asked the SEC to examine moving to a six-month reporting schedule, instead of the current system of reporting corporate results every three months.

"I asked [the leaders] what it is that would make business (jobs) even better in the U.S.", Trump tweeted.

"We are looking at that very, very seriously". But moving away from reporting earnings every three months would be a much more dramatic change that would nearly certainly trigger resistance from shareholders who want transparency from the companies they invest in.

SEC Chairman Jay Clayton, a Trump nominee, has said increasing the number of public companies and initial public offerings are among his top priorities.

Quarterly financial reports are a staple of US corporate practice. But moving away from reporting earnings every three months would be a much more dramatic change that would nearly certainly trigger resistance from shareholders who want transparency from the companies they invest in. The requirement dates to the establishment of the agency in the 1930s Great Depression, as a way to give investors confidence in company information.

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He never had a fight with me. "We never had a harsh exchange of words, everything is respected, I have no problems at all". But for me, it's good news that Matteo is staying.

Some market commentators believe the pressure to meet targets every 90 days causes executives to make decisions based on short-term thinking to satisfy the market at the expense of the long-term viability of their companies.

Quarterly earnings guidance is used by Wall Street and City analysts to build their earnings estimates and gauge company performance against these figures.

"Clear communication of a company's strategic goals-along with metrics that can be evaluated over time-will always be critical to shareholders", they wrote in the op-ed. They found that long-term investments declined at companies that were required to step up the frequency of their reporting.

SEC spokesmen didn't respond to a request for comment.

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