President Donald Trump has once again called on regulators to change how U.S. public companies disclose their financial performance, urging an end to the tradition of quarterly reports in favor of semi-annual statements. Under this proposed shift, companies would report every six months rather than every 90 days, a move Trump says would reduce expenses and allow executives to dedicate more time to strategic operations rather than short-term results.
In his message, Trump emphasized that this change would be contingent on the approval of the U.S. Securities and Exchange Commission. He drew a contrast between current U.S. practices and management approaches abroad, noting that nations like China tend to operate with long-term horizons, while the U.S. system is heavily focused on quarterly deliverables.
Proponents of semi-annual reporting argue that it could lighten the regulatory burden and promote long-term decision-making by businesses. Critics, however, warn that less frequent updates could reduce transparency, delay critical financial information, and introduce increased volatility in the markets. Some investors have expressed concern that waiting longer for earnings data might lead to surprises and mispricing.
This proposal is not unprecedented. Trump raised similar suggestions during his earlier presidency, but they did not result in policy change. The requirement for quarterly financial disclosure has been in place since the 1970s and is deeply embedded in U.S. financial regulation.
If implemented, the reform could align U.S. reporting practices more closely with those in the U.K. and several European countries where semi-annual reporting is more common. However, whether this change would significantly lower costs or if it might undermine investor confidence and stock valuations remains a matter of debate.
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