Donald Trump Asks SEC For Half-Year Earnings Report For Public Companies

Donald Trump Asks SEC For Half-Year Earnings Report For Public Companies

Donald Trump Asks SEC For Half-Year Earnings Report For Public Companies

SEC Chairman Jay Clayton said in a statement Friday that the agency "continues to study" the reporting requirement as well as other rules for public companies.

President Donald Trump said he's asked the Securities and Exchange Commission to study ending quarterly reporting for US businesses.

According to a CNN Money report, Trump said, "I'd like to see twice, but we're going to see".

On Twitter, Trump said that one executive had suggested the change as a way to boost business, but did not name the individual or the company.

While Trump can not force Clayton to make changes, as a matter of courtesy the SEC chairman may promise to study the issue.

In speaking to business leaders, one told him a twice-a-year reporting system would allow companies the flexibility and cost savings companies need to "Make business (jobs) even better in the U.S".

In addition to this federal requirement, Clayton would have to subject any changes to the SEC's own formal rule-making process, which would require the support of the majority of the SEC's sitting commissioners.

Public companies must report their sales, profits and the state of the company's balance sheet every quarter. The report compares company earnings with that of the previous year.

It's a move that would benefit businesses and workers, the president said.

While the quarterly earnings season has a negligible impact on market-wide volume, it does coincide with an increase in price turbulence among individual companies.

The quarterly reports provide important insight into a company's potential trouble spots, and force its executives to address shareholders' concerns while enforcing corporate discipline, corporate governance experts say. Well-known chief executives, including JPMorgan Chase & Co's Jamie Dimon, Berkshire Hathaway Inc's Warren Buffett and BlackRock Inc's Larry Fink have raised concerns about the focus placed on earnings reports and guidance.

Quarterly reporting by public companies has always been a cornerstone of US capital markets, with Wall Street analysts known for making closely monitored recommendations on buying or selling stock.

Companies that want to distance themselves from short-term scrutiny should instead stop publicly projecting the next quarter's earnings, Pozen added.

"You're probably going to get a debate where you have people saying these reports are unnecessary, and I don't think that will convince a lot of people", said Martin, who's now a senior counsel at the law firm Covington & Burling. In 1996, nearly 950 companies went public, according to data compiled by Bloomberg.

The U.S. Chamber of Commerce and other lobbying groups have blamed compliance burdens for preventing more companies from selling shares. What is clear is that investors are more reluctant to invest with companies when they have less information on their performance.

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