U.S. President Donald Trump has reiterated his call to eliminate quarterly earnings reporting requirements for publicly traded companies, advocating for a shift to semiannual financial disclosures. The statement was made Monday via a post on his social media platform, Truth Social, and adds to a growing debate around the frequency of corporate reporting in the United States. Trump wrote that companies should only be required to report financial results every six months, rather than quarterly.
He stated that such a move would reduce regulatory burdens and allow corporate leadership to focus on running their businesses. The proposed change would require approval from the U.S. Securities and Exchange Commission (SEC), which currently mandates quarterly filings for all publicly listed companies. Quarterly reporting has been a cornerstone of the U.S. financial regulatory system since 1970. Under current rules, companies must file Form 10-Q with the SEC three times per year and Form 10-K annually.
These filings provide key financial metrics, operational updates, and other material disclosures that investors and analysts use to evaluate company performance. The call for a shift to semiannual reporting aligns with previous discussions that occurred during Trump’s presidency in 2018. At the time, he raised the issue after speaking with executives from major U.S. companies, but no policy change was implemented. The SEC later sought public input on the idea but ultimately maintained the existing quarterly reporting framework. In his recent post, Trump compared the U.S. approach to financial reporting with that of other countries.
Trump calls for changes in U.S. financial disclosure rules
He claimed that nations like China manage their companies with a longer-term perspective, stating that the U.S. model of quarterly reporting was not beneficial for sustainable corporate growth. The comment did not include specific data or examples but underscored his broader stance against short-termism in public markets. The renewed call comes as some alternative exchanges have echoed similar positions. The Long Term Stock Exchange, based in San Francisco, announced earlier this month that it plans to file a formal petition with the SEC to eliminate quarterly reporting requirements.
The exchange, which promotes long-term corporate governance, argues that the current system places undue pressure on executives to deliver short-term financial results.Industry groups and regulatory bodies have expressed varying views on the matter. Advocates for reducing reporting frequency argue that quarterly earnings pressure can lead to decisions that prioritize immediate financial performance over sustainable growth. On the other hand, institutional investors and transparency advocates contend that regular reporting is essential for maintaining market discipline, detecting early signs of financial distress, and protecting shareholder interests.
Semiannual reporting proposal lacks formal backing
As of Monday, the SEC had not issued a statement in response to Trump’s comments. The agency has the authority to propose rule changes, which would be subject to public consultation and formal approval processes. There is currently no indication that any such regulatory change is under active consideration. Trump’s remarks have reintroduced the issue into public discussion, but no formal policy proposal has been submitted.
Any move to alter the existing framework would require a structured regulatory review process, including the drafting of a formal proposal, an open public comment period, internal economic analysis, and a final vote by the five-member SEC. The commission, which currently holds a Democratic majority, must approve any changes through a majority vote, following the established procedures outlined in the Administrative Procedure Act. The process also typically involves input from market participants, investor advocacy groups, and legal compliance experts to ensure alignment with federal securities laws. – By Content Syndication Services.