Trump renews push to end quarterly reporting.
US President Donald Trump has revived calls to end mandatory quarterly financial reporting for public companies, arguing that it would cut costs and allow executives to focus on running their businesses.
Trump first made the proposal in 2018 during his previous term. The US Securities and Exchange Commission (SEC) reviewed the issue at the time but did not move forward with rule changes. The SEC is now prioritising the latest initiative.
Quarterly reporting provides investors, regulators and other stakeholders with updates on company performance every three months. Supporters of the system say it promotes accountability and reduces the risk of mismanagement. Critics argue it is expensive and encourages short-term thinking.
Canadian public companies are also required to report quarterly, while the European Union operates on a semiannual model.
Academic research shows the trade-offs are complex. Less frequent reporting may free up resources but could also reduce transparency and increase “agency costs” where managerial actions diverge from shareholder interests. Banks could still demand quarterly updates as part of loan conditions even if public reporting rules were relaxed.
Smaller firms may see reduced costs, while larger firms often benefit from the market information and industry “spillovers” quarterly reporting provides. Some sustainability advocates argue that reducing reporting frequency could ease pressure to prioritise short-term financial results over longer-term projects.
The SEC has not set a timeline for a decision, but observers expect any change would be phased in gradually.
