By Jeff Cox
President Donald Trump floated the idea Monday of companies no longer providing earnings report on a quarterly basis and switching to semiannual instead.
The U.S. Securities and Exchange Commission told CNBC later Monday that it is actively looking into that plan.
“At President Trump’s request, Chairman [Paul] Atkins and the SEC is prioritizing this proposal to further eliminate unnecessary regulatory burdens on companies,” an agency spokesperson said.
Trump had initially raised the idea in a Truth Social post, saying it is “subject to SEC approval” and would “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.
During his first term, Trump had asked the SEC to study the issue but no recommendations came of the matter.
The wisdom of quarterly reports has come under question before. In a 2018 op-ed piece for The Wall Street Journal, Berkshire Hathaway’s Warren Buffett and JPMorgan Chase CEO Jamie Dimon advocated doing away with quarterly guidance, though not earnings reports.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
