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US regulators want to make corporate earnings reports less frequent, but investors have doubts
More than 280,000 comments have opposed the plan, with investors warning that less frequent reports could reduce transparency and raise capital costs.
- The SEC's proposal to shift from quarterly to semiannual earnings reports has drawn record opposition, with over 280,000 letters submitted since May 2026. Nick Chong's tracker indicates more than 99% of all comments oppose the rule change.
- Since 1970, publicly traded companies have disclosed financial performance every three months. The SEC proposed the semiannual option to reduce compliance costs and promote longer-term planning rather than short-term earnings fixation.
- The Securities Industry and Financial Markets Association warned that less frequent reporting could increase capital costs. Investors may demand higher risk premiums for less timely information, potentially offsetting the estimated $200,000 in annual compliance savings.
- SEC Chair Paul Atkins remains undeterred and is moving ahead with the proposal. Financial Executives International reported that 58% of surveyed member companies would choose semiannual reporting, though Drugmaker Eli Lilly already made its preference clear.
- A final decision is expected by late 2026. On Wednesday, the SEC suggested a rule change allowing the proposal to clear with support from only two commissioners, circumventing current leadership vacancies.
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47 Articles
The Conversation+44 Reposted by 44 other sources
US regulators want to make corporate earnings reports less frequent, but investors have doubts
A new financial reporting proposal, pitched by Securities and Exchange Commission Chair Paul Atkins, has generated enormous opposition, from ordinary savers to industry groups. AP Photo/Yuki IwamuraThe U.S. government has pitched an obscure accounting rule change that has ignited a firestorm of opposition. If enacted, its effects might be felt from the capital markets to your retirement savings account. At issue is a proposal by the Securities a…
·Boston, United States
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US regulators want to make corporate earnings reports less frequent, but investors have doubts
by Tzachi Zach, The Ohio State University, [This article first appeared in The Conversation, republished with permission] The U.S. government has pitched an obscure accounting rule change that has ignited...
Coverage Details
Total News Sources47
Leaning Left7Leaning Right10Center24Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
L 17%
C 59%
R 24%
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