Trump Wants Company Earnings Cycle to Change in US – ryan
Every three months, the ceos and cfos of public compaies a familiar process: They Begin Preparing to Disclose Their Quarterly Earnings to Investors.
President Donald Trump Wants that Cadence to Change.
In a Truth Social Post on Monday, Trump Said That US Companies Should Be ABLE to Report their Earnings Eve Six Monts, Not Every Three Months as Currently Required by The Sec.
“This Will Save Money, and Allow Managers to Focus on Propperly Running Their Companies,” Trump Said in His Post.
“Did you ever Hear the Statement that, ‘China has a 50 to 100 year View on Management of a Company, Whereas We Run Our Companies on a Quarterly Basis ???’ Swimming good !!! ” Trump Said on Monday.
Trump Floated the Idea of Lengthning the Earnings Report Cycle in His First Term.
In a 2018 post what was thatn twitter, Trump said hed heard from business leaders that semi-annual earnings reports would say Save Money.
“In Speaking with Some of the World’s Top Business Leaders I Asked What It Is It Wauld Make Business (Jobs) Better in the US ‘Stop Quarterly Reporting & A Six System,’ Said One. That Waled Allow Greater Flexibility & Save Money! Trump Said in 2018. The sec never implement the Change.
The modern requirement for publicly traded companies to Report Quarterly Earnings Goes Back to 1970, when the Second It A Requirement.
CEOS have publicly critized the short-term Focus of Quarterly Earnings-and Guidance
Executives from Elon Musk to Larry Fink to James Gorman have critigic various elements of the quarterly Reporting requirement over the years.
Proponents of legevening the Reporting Cadence Say Transitioning to a twice-aarment requirement be companies more on long-term performance. Advocates of the Current Quarterly Requirement Say That It Gives Investors More Information and Leads to Fairer Price of A Company’s Stock.
“TODAY’S CULTURE OF QUARTERLY EARNINGS HYSTERIA IS TOTALLY CONTRARY TO THE LONG-TERM APPROACH WE Need,” Blackrock CEO Larry Fink Wrote in His 2016 Letter to Shareholders.
“To be clear, we will believe Companies Should Still Still Quarterly Results-‘Long-Termism’ Should not Be A Substate for Transparency-But Should Be More Focus In thesee Reports on Demonstration Against Strategic Plans Than ane-Penny Their Eps Eps Analyst consensus estimates, “FINK wrote.
Warren Buffett and Jamie Dimon Criticized “Short-Termism” in a 2018 op-ed for the Wall Street Journal and Encoureded Public Companies to “Consider Moving Away from Providing Quarterly Earnings-Per-Share Guidance.
“Our Views on Quarterly Earnings Forecasts Should not be misconstruted As Opposition to Quarterly and Annual Reporting,” The Two Business Leaders Wrote. “Transparency About Financial and Operating Results is an Essential Aspect of US Public Markets, and We Support Being Open with Shareholders About Actual and Operational Metrics.”
The European Union Moved to Remove a Quarterly Reporting Requirement for EU-LISTED ISSUERS IN 2013, WHICH TOOK Two Years late. The eu requires that listed Companies Report Earnings twice a year: Once for the first six months of the fiscal year, and again for the end of the year.
Quarterly Reports “Can Enhance Investors’ Ability to Predict Future Earnings,” Acciting to a 2024 study By a team of researchers at the university of texas at Austin, the University of British Columbia, and George Mason University, Among Other Colleges.
Their Research Suggested That Companies’ Stock Returns Correled Better With Future Earnings when they reported earnings Quarter than they did twice a year.