Public Companies Could Ditch Quarterly Reports Under New SEC Proposal
Kunal Kapoor says smaller public companies bear the highest filing costs as the SEC weighs a shift to twice-yearly reports.
- On Tuesday, the Securities and Exchange Commission formally proposed allowing public companies to file earnings reports twice annually, ending a 55-year requirement for quarterly disclosures.
- President Donald Trump has championed this shift, arguing that mandatory quarterly reporting fosters short-termism and claiming a semiannual system would 'save money' and allow executives to focus on long-term strategy.
- Backing the reform, Morningstar CEO Kunal Kapoor notes that smaller, less-covered companies would gain meaningful cost relief and management bandwidth; Morningstar has operated without quarterly calls for more than 20 years.
- Conversely, Citadel founder Ken Griffin warned that reducing reporting frequency risks 'losing some level of accountability' and transparency, potentially increasing the cost of capital for businesses.
- A 60-day public comment period now begins, setting the stage for a financial industry debate over whether the shift improves corporate efficiency or undermines the transparency investors rely upon.
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25 Articles
The U.S. securities regulator, the Securities and Exchange Commission (SEC), presented on Tuesday a proposal for companies in that country to choose to report their results on a semi-annual basis, rather than on a quarterly basis as is currently the case.The bill could end with a tradition of more than 50 years in which listed companies must disclose their balance sheets to investors every three months.The company's performance report to the SEC…
Public companies could ditch quarterly reports under new SEC proposal
The SEC has proposed a change that would have a huge impact on the reporting requirements for public companies, including dozens in Minnesota. Advocates of the change argue it would remove red tape for companies and make it less costly for them to remain publicly traded. Opponents argue the change would result in less transparency.
SEC Chairman Paul Atkins and President Donald Trump had already announced this intention a few months ago, describing it as a way for companies to save money and focus on their long-term trajectory.
Trump admin proposes letting companies report earnings only twice a year
The Securities and Exchange Commission, the nation's top regulator for publicly traded companies, issued a proposal Tuesday that would give companies the option to report their earnings and financials only twice per year
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