Trump said a leading company boss told him switching to twice-yearly disclosure of accounts would reduce costs and be good for business. If enacted by the Securities and Exchange Commission, the change could allow more UK companies to join a trend away from quarterly reports.
The US president tweeted:
Donald J. Trump ✔@realDonaldTrump In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S. “Stop quarterly reporting & go to a six month system,” said one. That would allow greater flexibility & save money. I have asked the SEC to study! 1:30 PM – Aug 17, 2018 51.9K 20.2K people are talking about this
✔@realDonaldTrump
In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S. “Stop quarterly reporting & go to a six month system,” said one. That would allow greater flexibility & save money. I have asked the SEC to study!
51.9K
20.2K people are talking about this
Elon Musk, the founder of Tesla, has criticised the short-term thinking of analysts and investors. Explaining earlier this month why he was considering taking the electric carmaker private, he told employees: “Being public … subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter but not necessarily right for the long-term.”
JP Morgan’s boss, Jamie Dimon, and Warren Buffett, the world’s richest investor, argued earlier this year that companies should stop publishing quarterly earnings guidance that puts too much weight on hitting short-term targets. However, they said quarterly reporting should stay because it made companies accountable to the public.
Quarterly reporting has been a fixture of US corporate life since the Great Depression. Trump cannot order the SEC to scrap the practice and a rethink could face fierce opposition from some of the regulator’s commissioners.
For more read the full of article at The Guardian
