President Donald Trump urges the American Commission on securities and the exchange to end the quarterly profits reports for public companies. Instead, he requests that the reports be delivered every six months.
Since 1970, companies with more than $ 10 million assets whose securities have been held by more than 500 owners must report their finances every 90 days under dry rules. A transition to semi-annual reports would put disclosure to American companies in accordance with declaration practices in the United Kingdom and to several other countries of the European Union.
“This will save money and allow managers to focus on the correct management of their businesses,” Trump wrote in a social article on Monday Truth. “Have you ever heard the statement that” China has a 50 to 100 years of view of the management of a business, while we run our businesses on a quarterly basis ??? »Not good !!! “”
A second representative did not immediately return the request for Thewrap comments.
Trump’s last call comes after exploring the idea during his first mandate. The current dry leadership has expressed interest in reducing regulations.
The long -term scholarship, which said they had planned to request the dry to remove the quarterly requirement last week, said that this decision could lead to “more strategic information from companies while reducing short -term volatility and better alignment of business management to investor interests”.
“As CEOs, we must absolutely deliver short -term measures; our customers and investors depend on it,” said CEO of LTSE, Maliz Beams, in a press release. “But the key is to include short -term objectives as Mile’s deliberate markers on the way to creating long -term value. This petition takes a critical step towards the permit to allow companies truly long -term to focus on sustainable growth rather than a quarterly noise. ”
In 2018, the president of Berkshire Hathaway, Warren Buffett, the CEO of Jpmorgan Chase, Jamie Dimon, and nearly 200 heads of the management of large American companies represented by the business rounding, also pleaded for a gap of the quarterly reporting requirement in a journal of Wall Street OP-ED.
“According to our experience, the councils on quarterly profits often lead to an unhealthy concentration on short-term profits to the detriment of long-term strategy, growth and sustainability,” they wrote at the time. “Companies frequently retain technological spending, hiring and research and development to respond to quarterly profits forecasts which can be affected by factors outside the control of the company, such as fluctuations in raw material prices, the volatility of the market market and even weather.”
Meanwhile, the SEC indicates on its website that the declaration requirements “regularly maintain shareholders and informed markets transparent”.
“Appropriate and precise financial information is the cornerstone of the financial markets,” wrote the CFA Institute Research and Policy Center. “The quarterly financial reporting of financial information creates a higher playground for access to financial information between initiates and external investors and shareholders, and ultimately promotes greater confidence in investors and an improvement in capital allowance.”
Leg more to come …
