President Donald Trump on Friday advocated for a possible end to the long-held quarterly earnings reports for publicly traded companies, saying This particular would likely boost business as well as in turn help create jobs.
In a morning tweet, the president said he had spoken to “business leaders” for their ideas on growth as well as they believed filing earnings reports every three months was one obstacle for growth. One idea would likely be to report every six months.
The Securities as well as Exchange Commission said This particular continues to study issues affecting long-term decision make for companies. In a statement, SEC Chairman Jay Clayton said Trump had “highlighted a key consideration.”
“The SEC’s Division of Corporation Finance continues to study public company reporting requirements, including the frequency of reporting,” Clayton said. “As always, the SEC welcomes input via companies, investors, as well as some other market participants as our staff considers these important matters.”
Addressing the issue later within the morning with reporters, Trump said, “I’d like to see twice” a year for reporting.
He said he spoke with the retiring CEO of PepsiCo — an apparent reference to Indra Nooyi — who had mentioned biannual reporting as a way to, in Trump’s words, “make This particular even better.”
“as well as I thought of This particular as well as This particular made sense to me, because you know we are not thinking far enough out,” Trump said. “We’ve been accused of which for a long time, This particular country. So we’re looking at which very, very seriously. We’re looking at twice a year instead of four times a year.”
Nooyi said she spoke within the larger context of allowing corporations, including those on the Business Roundtable in which she takes part, to be able to take a longer view of operations.
“Most agree which a short-term only view can inhibit long-term strategy, as well as therefore long-term investment as well as value creation,” Nooyi said in a statement. “My comments were made in which broader context, as well as included a suggestion to explore the harmonization of the European system as well as the U.S. system of financial reporting. within the end, all companies have to balance short-term as well as long-term performance.”
The European Commission in 2014 dropped a requirement for companies to report on a quarterly basis, a style the U.S. could someday follow.