President Trump proposed Friday that public companies should report their financial results only twice a year instead of quarterly.
Such a move, he implied, would reduce companies’ costs of complying with bureaucratic red tape and help corporate executives focus on longer-term goals. Mr. Trump called on the Securities and Exchange Commission to study the feasibility of scaling back the frequency of corporate reporting…
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
Louis Brandeis, Other People’s Money: And How the Bankers Use It (1913-14)
Thomas Mortimer, Every Man His Own Broker (seventh edition, 1769)
Articles and other research
Jamie Dimon and Warren E. Buffett, “Short-Termism Is Harming the Economy” (op-ed in The Wall Street Journal)
“Business Roundtable Supports Move Away from Short-Term Guidance” (press release)
Barry Ritholtz, “Reporting Profits Daily Would End Corporate Short-Termism” (Bloomberg Opinion)
“Moving Beyond Quarterly Guidance: A Relic of the Past” (FCLTGlobal)
John R. Graham, Campbell R. Harvey and Shiva Rajgopal, “Value Destruction and Financial Reporting Decisions” (Financial Analysts Journal)
Mark J. Roe, “Stock Market Short-Termism’s Impact” (SSRN.com)
Salman Arif and Emmanuel T. De George, “Does Financial Reporting Frequency Affect Investors’ Reliance on Alternative Sources of Information?” (SSRN.com)
Henry T.C. Hu, “Too Complex to Depict? Innovation, ‘Pure Information,’ and the SEC Disclosure Paradigm” (Texas Law Review)