By John Meyer, consultant in financial affairs – Eurasia Business News, September 15, 2025. Article no 1786

President Donald Trump has called for ending the requirement for publicly traded U.S. companies to report quarterly earnings, proposing instead a shift to semiannual (every six months) reporting. He argues that this change, which would require approval from the Securities and Exchange Commission (SEC), would lower costs for companies and allow managers to focus more on running their businesses effectively rather than preparing frequent reports. Trump highlighted that unlike the U.S., countries like China have a multi-decade perspective on company management, implying that quarterly reporting fosters a short-term mindset that is “not good.”

The current quarterly reporting mandate has been in place since 1970. Trump’s new push revisits similar suggestions he made during his first term, when he also asked the SEC to examine the possibility of reducing reporting frequency, although no changes materialized then.

Supporters of the semiannual reporting model argue it would foster long-term planning and reduce the administrative burden, while critics caution that less frequent updates could reduce transparency and increase market volatility.

The change would align the U.S. more closely with European practices, where semiannual reporting is standard, offering companies the option to issue quarterly reports if they choose. The SEC currently has a Republican majority, and the process to implement this change could take 6 to 12 months if pursued.

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© Copyright 2025 – Eurasia Business News. Article no. 1786