In a post on Truth Social on 15/9, Trump argued that eliminating mandatory quarterly reporting would reduce costs for listed companies and discourage short-term thinking.

"This saves money and allows management to properly run their business," Trump stated. He previously proposed this change in 2018.

Traders at the New York Stock Exchange on 11/3/2025. Photo: AFP

The US previously required listed companies to publish semi-annual financial reports before switching to quarterly reporting in 1970. Reverting to six-month reporting would align the US more closely with the UK and some European Union countries.

In 2018, the US Securities and Exchange Commission (SEC) sought public input on the frequency of mandatory financial reporting but ultimately maintained the 90-day requirement. However, this time, they seem more inclined to support Trump's proposal, considering it a priority.

"At President Trump's suggestion, Chair Atkins and the Commission are prioritizing a proposal to further eliminate unnecessary regulatory burdens on businesses," an SEC spokesperson said.

The debate over quarterly versus semi-annual reporting has been ongoing among businesses. In 2018, business leaders Jamie Dimon and Warren Buffett wrote in the Wall Street Journal that "short-termism" is harming the US economy. The US Chamber of Commerce and the Business Roundtable have also previously called for an end to quarterly reporting, arguing it distracts companies from long-term goals.

Recently, Nasdaq President and CEO Adena Friedman expressed support for allowing companies to choose less frequent reporting. She believes this would reduce "barriers, burdens and costs" to listing on Wall Street.

Conversely, some investors warn that less frequent reporting could decrease transparency, increase market volatility, and make US stocks less attractive. They argue that one reason US stocks trade at higher valuations than other markets is due to stricter financial reporting. The S&P 500 currently trades at a forward price-to-earnings (P/E) ratio of 24.3 for the next 12 months, compared to 15.28 for Europe's STOXX 600.

M. Todd Henderson, a law professor at the University of Chicago, suggests many companies might continue quarterly reporting even if it's not mandatory, due to investor demand. "While a focus on short-term profits does occur in some cases, it's not a systemic phenomenon," he said.

Phien An (Reuters)