Quarterly or bi-annual: Will reducing financial reporting frequency help?

Moving to a biannual reporting cycle will inevitably increase information asymmetry between management and shareholders, potentially leading to greater volatility in financial markets

United States (US) President Donald Trump recently suggested that companies, subject to approval from the Securities and Exchange Commission (SEC), be allowed to report financial results on a six-monthly basis rather than quarterly. He reasoned that this would save money and allow company management to focus on running the business. Several individuals, including corporate leaders, share similar views and believe that companies are often entangled in the quarterly cycle, which hinders long-term thinking. In a joint 2018 piece in The Wall Street Journal, Jamie Dimon and Warren Buffett had argued that “... quarterly earnings guidance often leads to