President Donald Trump on Monday called for US companies to report earnings every six months instead of quarterly, arguing that the change would save money and let executives focus on running their businesses rather than chasing short-term results.
In a Truth Social post, Trump said the proposal is “subject to SEC approval” and criticized the short-term pressure of quarterly reporting,
“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!!!’” Trump wrote.
Trump previously floated this idea during his first term, and the US Securities and Exchange Commission (SEC) examined it in 2018 but did not make any changes.
Critics of quarterly reporting, including Warren Buffett and JPMorgan Chase CEO Jamie Dimon, have argued that frequent earnings guidance promotes short-termism in corporate management.
Supporters of the current system say quarterly reports provide timely information and transparency for investors.
Under current US regulations, quarterly earnings reports are mandatory, though issuing forward-looking guidance is voluntary.
Any change to the reporting schedule would require SEC approval or legislative action.
While Trump cited China as a point of comparison, Chinese companies are required to file both quarterly and semiannual reports. Companies listed on the Hong Kong exchange, however, report only every six months.
Trump’s proposal would bring US reporting requirements more in line with the United Kingdom and European Union, where semiannual reporting is standard but quarterly reports are optional.