Trump proposes SEC move away from requiring quarterly reports

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(The Center Square) – President Donald Trump on Monday said public companies should report their earnings on a six-month basis, rather than quarterly.

"This will save money, and allow managers to focus on properly running their companies," Trump wrote in a Truth Social post Monday morning. "Did you ever hear the statement that, 'China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???' Not good!!!"

The European Union and the U.K. ended mandatory quarterly financial reporting. They allow publicly listed companies to issue half-year and annual reports.

In China, companies must file earnings reports every quarter and semi-annually.

Trump first brought up the idea back in the summer of 2018 during his first term. Any change would require approval from the SEC, Trump said.

The U.S. Securities and Exchange Commission has previously studied the issue around reporting requirements. In a 2018 report, authors Theodore Rosen, Ethan Shire and Benjamin Winston wrote that the requirements have critics and proponents. 

"Critics believe that more frequent reporting incentivizes short-term thinking among management and investors," they noted. "Yet, current reporting requirements have been attributed to greater transparency of information and a lower cost of capital for companies seeking to raise funds."

However, others want public companies to report frequently. 

"Institutional investors argue that any lessening of reporting frequency will limit their access to vital information needed to make informed and effective investment decisions," according to the report.

The report suggested a dual solution.

"Adopting a bifurcated reporting system appropriately addresses the major issues with quarterly reporting for small-cap companies, but holds mid and large cap companies to the current reporting regimen," the authors noted. "Under such a system, smaller sized companies would be allowed to report on a semi-annual basis, while mid and larger businesses would continue to disclose quarterly."

The Long-Term Stock Exchange formally petitioned the SEC for a change to six-month reporting last week. 

"Extensive academic research has documented the negative effects of quarterly reporting pressure on long-term value creation," the group said. "For long-term investors, the change could lead to more strategic company insights while reducing short-term volatility and better alignment of corporate management to investor interests. Under the proposed guidelines, all companies would retain the option to release quarterly earnings but would not be required to do so."

Long-Term Stock Exchange CEO Maliz Beams said the change was needed.

"As CEOs, we absolutely have to deliver on short-term metrics; both our customers and investors depend on it," Beams said. "But the key is including short-term targets as deliberate mile markers on the path to long-term value creation. This petition takes a critical step toward enabling genuinely long-term companies to focus on sustainable growth rather than quarterly noise."

Trump is the largest shareholder of Truth Social, the social media company the president created in 2021. The company went public through a merger with a special purpose acquisition company in March 2024.