Trump sets wheels in motion to abolish quarterly reporting rule

How earnings calls go bad

How earnings calls go bad

"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 US", the president wrote on Twitter.

This summer the U.S. House of Representatives passed the JOBS and Investor Confidence Act of 2018 (S. 488), also known as the JOBS Act 3.0, with bipartisan support. In a tweet early today, Trump said that after speaking with "some of the world's top business leaders", he's asked the U.S. Securities and Exchange Commission to determine whether shifting to a six-month reporting regimen would make more sense.

Regulators can conduct studies of their own volition, or will do so at the request of Congress, the president, or the public.

There are also tremendous expenses tied to preparing quarterly and annual reports.

Business groups including the U.S. Chamber of Commerce, the Securities Industry and Financial Markets Association and exchange operator Nasdaq have been lobbying hard over the past year for lawmakers and the SEC to relax listing rules, warning that the decline in listings hurts jobs and pension funds.

In a tweet, he argued a longer time frame would "allow greater flexibility & save money".

"Many market participants, as well as the Business Roundtable which we are a part of, have been discussing how to better orient corporations to have a more long-term view", Nooyi said in a statement emailed to Reuters. "So we're looking at that very, very seriously". Using Bloomberg data that looks at 10-day volatility in single stocks since 2010, price swings during the four reporting periods are roughly 10 per cent higher than in the rest of the year. "In the end, all companies have to balance short-term and long-term performance".

In a statement, SEC Chairman Jay Clayton said that Trump had highlighted "a key consideration for American companies" and that the agency is already reviewing public disclosure requirements, including their "frequency".

Last fall it laid out changes to capital market rules in a U.S. Treasury report, but did not advocate scrapping quarterly reporting.

The SEC was created in 1934 in the midst of the great depression and requires publicly-traded companies to issue quarterly and annual earnings reports to keep the public informed on their operations and financial situation.

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

Scrapping the quarterly requirement "is a solution in search of a problem", said Charles Elson, a professor and director of the University of Delaware's Weinberg Center for Corporate Governance.

Trump is not much for thinking about the long term.

If a company struggles to meet quarterly profit expectations or executives feel pressured to manipulate results to reach Wall Street expectations, that reflects poor management and communication, Elson said.

But critics contend that new reporting requirements may not spur meaningful change given the deluge of company information available on social media.

Notícias recomendadas

  • Janet Jackson, Daddy Yankee collaborate in new song

    Janet Jackson, Daddy Yankee collaborate in new song

    " Made for Now " is Jackson's first single since she dropped her 11th studio album Unbreakable , which was released in 2015.
    Entry-level MacBook rumored to debut alongside 2018’s iPhones

    Entry-level MacBook rumored to debut alongside 2018’s iPhones

    So, like we said, it's doubtful Apple is going to shove another product into the mix and still keep the event to +/- two hours. A brand new story says the cheaper MacBook will arrive in September, and that it might not be as cheap as initially expected.
    Amazon could be working on a DVR box to record live TV

    Amazon could be working on a DVR box to record live TV

    The company already sells Fire TV streamers, the new Fire TV Cube and TVs from Toshiba that have the Fire TV interface built in. In a back to school sale, Amazon has dropped the prices on a bunch of their Fire TV and Echo products.
  • Bill Maher Taunts Trump Over Omarosa: 'He Lost His One Black Friend'

    Bill Maher Taunts Trump Over Omarosa: 'He Lost His One Black Friend'

    Before joining the administration, Manigault Newman handled African-American outreach for Trump's presidential campaign. Now, she is threatening to release even more damning recordings and documentation if Trump goes after her again.
    Onus on Ozil to rise above criticism, says ex-Arsenal star Wright

    Onus on Ozil to rise above criticism, says ex-Arsenal star Wright

    It is still too early to judge Unai Emery based on these defeats against Manchester City and Chelsea to open the season. Former Super Eagles captain, Kanu Nwankwo, has warned Arsenal manager Unai Emery, to stop trying to change Mesut Ozil.
    Kellyanne Conway: Trump Has Been Veterans' 'Best Friend'

    Kellyanne Conway: Trump Has Been Veterans' 'Best Friend'

    People do see it that way, I don't say I do, but people see it that way. "You should like this, it's your boss". Kellyanne said she found her husband's disparaging comments about Trump to be "disrespectful".
  • Met Eireann weather forecast for the weekend

    Met Eireann weather forecast for the weekend

    The National Hurricane Center now has a 20-percent chance of development for this disturbance over the next five days. THE west of Ireland is expected to be lashed with heavy rains next weekend as Storm Ernesto passes its shores.
    England cricketer Ben Stokes found not guilty in assault trial

    England cricketer Ben Stokes found not guilty in assault trial

    Another of the accused men, Ryan Hale, was found not guilty during the trial on the direction of the judge. Stokes has missed seven of England's last 11 tests, a stretch that dates back to the Ashes in Australia.
    Steve Bruce: 'Tottenham Hotspur could have signed Jack Grealish'

    Steve Bruce: 'Tottenham Hotspur could have signed Jack Grealish'

    Grealish was the subject of intense interest from Tottenham in the summer as they looked to profit from Villa's financial crisis. He's really rolled his sleeves up and is actively taking a part in running things, which is good news for everyone'.
  • Google Admits to Location History Collection

    Google Admits to Location History Collection

    Google Account support page also used to say that with location history off, the places users go to are no longer stored. This setting does not affect other location services on your device , like Google Location Services and Find My Device.
    Labour Party suspends former MP Jim Sheridan

    Labour Party suspends former MP Jim Sheridan

    Labour has suspended a former MP from the party over comments reportedly made online about the Jewish community. Anti-Semitism is an evil which must be called out and challenged, whenever and wherever it appears.
    Sarri, Emery off to divergent starts in race for top four

    Sarri, Emery off to divergent starts in race for top four

    Asked if he sees Chelsea as potential title challengers, Sarri said candidly: "Not in this moment". We need to be more compact. "I hope we will be able to play for 90 minutes in two months".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.