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Trump asks U.S. SEC to consider switch to half-year corporate filings

Trump asks U.S. SEC to consider switch to half-year corporate filings

Regulators can conduct studies of their own volition, or will do so at the request of Congress, the president, or the public.

President Donald Trump on Friday said he has instructed the US Securities and Exchanges Commission to investigate the abolition of quarterly financial reporting for US companies, after discussions with business leaders.

On Twitter, Trump said that one executive had suggested the change as a way to boost business, but did not name the individual or the company.

While some business leaders have groaned about the rigours associated with having to disclose financial figures four times a year, the SEC has been reticent to make any changes. It isn't immediately clear what impact it would have on stock markets or the broader economy if public companies moved to reporting their earnings every six months rather than on a quarterly basis.

"My comments were made in that broader context, and included a suggestion to explore the harmonization of the European system and the USA system of financial reporting".

He said outgoing PepsiCo Inc (PEP.O) Chief Executive Indra Nooyi had brought it up to him. "In the end, all companies have to balance short-term and long-term performance", Nooyi said. "So we're looking at that very, very seriously", Trump said as he was boarding Marine One on the White House lawn Friday morning.

The SEC was created in 1934 in the midst of the great depression and requires publicly-traded companies to issue quarterly and annual earnings reports to keep the public informed on their operations and financial situation. "One of the inherent issues with quarterly reporting is that it does tend to drive management to make decisions geared toward short-term metrics, which is not always in everyone's best interest".

President Erdogan says crash of lira ‘political plot’ against Turkey
A Turkish delegation visited Washington for talks this week but left with no signs of a breakthrough. Since some of Turkey's debt is in dollars, it's also making the country's financial situation worse.

Following Clayton's statement, the agency also announced it had voted to adopt a rule change first proposed in 2016 to streamline some company accounting disclosures, in an unscheduled private commission vote.

There are also tremendous expenses tied to preparing quarterly and annual reports. "And so they don't do it, because the definition of being a successful business is narrowed to what your quarterly earnings reports are".

Tesla Inc (TSLA.O) Chief Executive Elon Musk stunned investors last week with a plan to take the electric carmaker private, a move he says would benefit shareholders by removing short-term pressures. That was the argument made by Jamie Dimon, the chief executive of JPMorgan Chase, and investor Warren E. Buffett in a widely shared op-ed published by the Wall Street Journal in June.

The President has highlighted a key consideration for American companies and, importantly, American investors and their families - encouraging long-term investment in our country.

The Council of Institutional Investors (CII) believes that public companies should continue to report quarterly.

Druckenmiller noted that investors like to know what's going on with the companies they invest in. "It's a lot of work to report every three months", said Charles M. Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware.

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