Trump proposes half-yearly corporate result filing; snubs quarterly trend

Trump said that moving from quarterly to six-monthly reporting would save companies money and allow managers to focus on running their businesses effectively

United States (US) President Donald Trump on Monday called for a major change in corporate reporting requirements, suggesting that companies and corporations should report financial results on a six-monthly basis rather than quarterly.

 

In a post on his social media platform Truth Social, Trump said the move, subject to approval by the Securities and Exchange Commission (SEC), would save companies money and allow managers to focus on running their businesses effectively.

 

"Subject to SEC Approval, Companies and Corporations should no longer be forced to 'Report' on a quarterly basis (Quarterly Reporting!), but rather to Report on a 'Six (6) Month Basis'. This will save money, and allow managers to focus on properly running their companies. Did you ever hear the statement that, 'China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???' Not good!!!" Trump said.

 

 

Notably, publicly listed companies in China publish their results quarterly, except those listed on the Hong Kong exchange.

 

This is not the first time Trump has criticised quarterly filings. He had floated a similar half-yearly reporting idea during his first term, Bloomberg reported. Moreover, while the SEC is yet to approve or comment on the proposal, its chairman, Paul Atkins, has often criticised such disclosures, which many companies also view as overly burdensome and offering limited benefit to shareholders, the report added.

 

Previously, some industry leaders also called for ending quarterly guidance, if not the results themselves.

 

“In our experience, quarterly earnings guidance often creates an unhealthy focus on short-term profits at the expense of long-term strategy, growth, and sustainability,” Berkshire Hathaway’s Warren Buffett and JPMorgan Chase CEO Jamie Dimon wrote in a 2018 piece for The Wall Street Journal.