Trump calls for end to quarterly earnings reporting, proposes six-month cycle for US businesses
In a move that drew attention on Truth Social, US President Donald Trump said that the three-month reporting cycle for public companies is becoming a burden, and should be replaced with semi-annual reporting.
According to Mr. Trump, the quarterly reporting requirement causes businesses to incur costs, time, and short-term pressure, while leaders need to focus on long-term strategy. “We always hear that China manages businesses with a 50- to 100-year vision, while in the US, companies have to live by the quarter. This is really not good!”, he wrote.
Old debate returns
The idea of abolishing quarterly reports is not new. During his first term (2017–2021), Trump asked the Securities and Exchange Commission (SEC) to study the possibility, but there was no clear change in policy at that time. He has since revived the proposal, showing that this is still an issue of concern to politicians and businesses.
Benefits and risks
Supporters argue that:
Businesses will have more resources to focus on product development, market expansion, and long-term management, instead of being caught up in the "quarterly life and death" cycle.
The biannual reporting system can reduce short-term pressure from Wall Street, which often pushes corporate leaders to make decisions that serve immediate profits.
However, critics argue that quarterly reporting is an important transparency tool, helping investors keep abreast of business developments and respond promptly to fluctuations. Reducing the frequency of disclosures could increase the risk of information being hidden.
A message to businesses
Although the debate continues, Trump’s move shows that there are growing calls to reconsider how US-listed companies must report their financial results. In the context of fierce global competition and the rise of Asian economies, the question of “should businesses manage for the quarter or the decade” is becoming a strategic topic on the boards of many corporations.