No quarterly reports? Trump renews contentious debate on corporate disclosure
TOI World Desk | Sep 16, 2025, 19:22 IST
A fresh debate over U.S. corporate transparency has reignited after President Donald Trump renewed his call to end quarterly earnings reporting. The proposal, now a priority for the Securities and Exchange Commission, would shift companies to a semiannual cycle. Supporters argue it would cut costs and curb short-termism, pointing to examples in Singapore and Europe. Critics, including institutional investors and market watchdogs, warn that fewer disclosures could weaken accountability and reduce market efficiency. The decision could reshape U.S. capital markets, altering how investors and companies interact.
A renewed bid to eliminate reporting quarterly profits in favor of a half-year cycle has rekindled an old controversy over the future of U.S. corporate disclosure. This time, though, the proposal is not all talk — the U.S. Securities and Exchange Commission (SEC) has indicated it is giving the plan priority, hinting that change is nearer than ever.
The plan, again supported by President Donald Trump, would be a radical change in the way American businesses talk to shareholders. Rather than the usual 90-day rhythm, publicly held companies would have to report only twice a year. Though the idea initially emerged during Trump's presidency in 2018, it seems to have picked up new regulatory steam with SEC Chairman Paul Atkins, who has joined Trump's call for curbing what he terms as "unnecessary regulatory burdens on companies.
Trump has contended that biannual reporting would reduce expenses and deter short-termism. On his social media site, he stated corporations spend money pursuing quarterly goals rather than on long-term planning. "This shift would reduce expenses and deter shortsightedness," Trump wrote, recalling his previous attempts during his first term to cut back on regulations he deemed overreaching.
The case for fewer reports
Those who advocate the change claim that the existing quarterly system feeds a short-termism culture. Firms under stress to deliver earnings targets regularly tend to focus more on quick gains over long-term growth, its critics say, and the cycle can warp corporate agendas.
Billionaire investor Warren Buffett and JPMorgan Chief Executive Jamie Dimon argued this position in a 2018 Wall Street Journal op-ed on behalf of Business Roundtable, an alliance of top CEOs. They called on companies to end quarterly earnings guidance, citing that short-term financial goals "encourage an unhealthy emphasis on short-term profits at the expense of long-term strategy, growth, and sustainability."
Global examples also support the argument for change. Singapore ended quarterly reporting in 2020 on the grounds of high compliance costs and modest benefits for investors. Various European markets, such as the UK, already employ a semiannual reporting framework with minimal disruption to transparency.
The case against abolishing quarterly updates
Detractors caution that fewer reports would erode investor confidence, especially among smaller shareholders who rely on timely disclosures to assess performance and risk. The Council of Institutional Investors (CII), which represents pension funds managing trillions of dollars in assets, has been an ardent foe of frequency cutbacks. The organization contends that quarterly disclosures are the key to market efficiency, providing investors with a consistent flow of information to make smart decisions.
University of Pennsylvania securities law professor Jill Fisch explained to Reuters that larger gaps between disclosures would skew markets. "If material information is kept secret for months, the market gets less efficient. Investors can misprice assets, and volatility may increase when eventually earnings are announced," she said.
Critics also argue that quarterly reporting keeps management accountable, helping flag early warning signs of poor performance and deterring corporate misconduct. Without it, companies could delay sharing bad news until it becomes unavoidable.
The United States is not alone in arguing about short-term concentration versus long-term strategy. In India, regulators and corporate leaders have also debated the usefulness of quarterly earnings guidance. M. Damodaran, a former Chairman at the Securities and Exchange Board of India (SEBI), has stated that guidance needs to be stopped, while Infosys officials have weighed in on the conflict between 90-day cycles of performance and long-term objectives. Nevertheless, quarterly reporting is still required in India under listing requirements.
The actual issue is not the quarterly reports themselves, but rather the issuance of quarterly earnings guidance, others say. A middle-ground approach would preserve quarterly disclosures but deter forward-looking projections that put pressure on companies to achieve short-term goals without substance.
That was the subtlety of the Buffett-Dimon argument: they were asking to put an end to quarterly guidance, not necessarily reporting.
The road ahead
Whether the U.S. will eventually ditch quarterly reporting will hinge on how regulators weigh corporate pressures to be flexible against investor demands for transparency. The SEC earlier voted down the notion after soliciting public comment in 2018. But now that the agency is labeling Trump's plan a priority, the math might be changing.
If the U.S. does go to semiannual reporting, it would align America more with European and Asian practices. Nevertheless, the U.S. capital market has traditionally been characterized by high standards of disclosure, and altering that custom could redefine not only corporate conduct but also the assumptions of international investors.
At least for the moment, the question is: will fewer reports ease short-term pressure — or merely fill information holes in the world's most scrutinized stock market?
The plan, again supported by President Donald Trump, would be a radical change in the way American businesses talk to shareholders. Rather than the usual 90-day rhythm, publicly held companies would have to report only twice a year. Though the idea initially emerged during Trump's presidency in 2018, it seems to have picked up new regulatory steam with SEC Chairman Paul Atkins, who has joined Trump's call for curbing what he terms as "unnecessary regulatory burdens on companies.
Trump has contended that biannual reporting would reduce expenses and deter short-termism. On his social media site, he stated corporations spend money pursuing quarterly goals rather than on long-term planning. "This shift would reduce expenses and deter shortsightedness," Trump wrote, recalling his previous attempts during his first term to cut back on regulations he deemed overreaching.
The case for fewer reports
Those who advocate the change claim that the existing quarterly system feeds a short-termism culture. Firms under stress to deliver earnings targets regularly tend to focus more on quick gains over long-term growth, its critics say, and the cycle can warp corporate agendas.
Billionaire investor Warren Buffett and JPMorgan Chief Executive Jamie Dimon argued this position in a 2018 Wall Street Journal op-ed on behalf of Business Roundtable, an alliance of top CEOs. They called on companies to end quarterly earnings guidance, citing that short-term financial goals "encourage an unhealthy emphasis on short-term profits at the expense of long-term strategy, growth, and sustainability."
Global examples also support the argument for change. Singapore ended quarterly reporting in 2020 on the grounds of high compliance costs and modest benefits for investors. Various European markets, such as the UK, already employ a semiannual reporting framework with minimal disruption to transparency.
The case against abolishing quarterly updates
Detractors caution that fewer reports would erode investor confidence, especially among smaller shareholders who rely on timely disclosures to assess performance and risk. The Council of Institutional Investors (CII), which represents pension funds managing trillions of dollars in assets, has been an ardent foe of frequency cutbacks. The organization contends that quarterly disclosures are the key to market efficiency, providing investors with a consistent flow of information to make smart decisions.
University of Pennsylvania securities law professor Jill Fisch explained to Reuters that larger gaps between disclosures would skew markets. "If material information is kept secret for months, the market gets less efficient. Investors can misprice assets, and volatility may increase when eventually earnings are announced," she said.
Critics also argue that quarterly reporting keeps management accountable, helping flag early warning signs of poor performance and deterring corporate misconduct. Without it, companies could delay sharing bad news until it becomes unavoidable.
The United States is not alone in arguing about short-term concentration versus long-term strategy. In India, regulators and corporate leaders have also debated the usefulness of quarterly earnings guidance. M. Damodaran, a former Chairman at the Securities and Exchange Board of India (SEBI), has stated that guidance needs to be stopped, while Infosys officials have weighed in on the conflict between 90-day cycles of performance and long-term objectives. Nevertheless, quarterly reporting is still required in India under listing requirements.
Finding balance
The actual issue is not the quarterly reports themselves, but rather the issuance of quarterly earnings guidance, others say. A middle-ground approach would preserve quarterly disclosures but deter forward-looking projections that put pressure on companies to achieve short-term goals without substance.
That was the subtlety of the Buffett-Dimon argument: they were asking to put an end to quarterly guidance, not necessarily reporting.
The road ahead
Whether the U.S. will eventually ditch quarterly reporting will hinge on how regulators weigh corporate pressures to be flexible against investor demands for transparency. The SEC earlier voted down the notion after soliciting public comment in 2018. But now that the agency is labeling Trump's plan a priority, the math might be changing.
If the U.S. does go to semiannual reporting, it would align America more with European and Asian practices. Nevertheless, the U.S. capital market has traditionally been characterized by high standards of disclosure, and altering that custom could redefine not only corporate conduct but also the assumptions of international investors.
At least for the moment, the question is: will fewer reports ease short-term pressure — or merely fill information holes in the world's most scrutinized stock market?