WASHINGTON D.C. β Former U.S. President Donald Trump has once again suggested a major shift in corporate financial rules. Trump Proposes Ending Quarterly Corporate Reporting and replacing it with a system where companies disclose results only twice a year.
Trump argued that quarterly reporting puts unnecessary pressure on companies. He said frequent disclosures force businesses to focus on short-term performance rather than long-term growth. According to him, semi-annual reporting would free up time and resources for innovation.
He pointed out that several countries, including China and some in Europe, already follow six-month reporting schedules. He believes the United States should adopt a similar approach to stay competitive and reduce corporate costs.
Supporters of his idea argue that less frequent reporting could help executives avoid the constant pressure of meeting quarterly expectations. They say businesses would spend less money and effort on preparing financial statements.
Critics, however, warn that reducing reporting frequency could limit transparency. Investors, they argue, would have less timely information about company performance. This might increase risks for shareholders and reduce market confidence.
Quarterly reporting has been a requirement of the U.S. Securities and Exchange Commission (SEC) since 1970. Any changes would need approval from regulators and possibly new legislation.
This is not the first time Trump has made such a proposal. He raised the idea during his first term in office, but no action was taken at the time.
Some business leaders have welcomed the renewed discussion, saying it could encourage long-term investment and reduce corporate short-termism. Others believe quarterly updates are essential for accountability and investor trust.
In short, Trump Proposes Ending Quarterly Corporate Reporting to shift focus from short-term earnings to sustainable growth. The debate is likely to continue, but any change will depend on regulatory review and broader support.
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