Amid a growing debate over the future of quarterly reporting, experts are weighing what a slower cadence of disclosure could mean
As policymakers and corporate leaders debate the future of quarterly financial reporting in the US, a significant shift looms over how public companies communicate with investors and how they are held accountable.
Beginning in 1970, the US has required its public companies to report its earnings every three months. Any previous attempts to cut this back has been met with opposition from shareholders and industry groups who argue that the changes could threaten transparency and market volatility.
This time around the call to review this requirement was triggered by the Long-Term Stock Exchange, in the form of a petition to the SEC to allow public companies to report earnings semi-annually. They have argued it will lead to reduced regulation, greater long-term focus and alignment with non-US jurisdictions that have already ditched the quarterly rule.
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