By : Shatha Kalel
In a recent Truth Social post, U.S. President Donald Trump proposed ending the long-standing requirement for public companies in the United States to report their financial results every quarter. Instead, he endorsed semi-annual reporting, arguing that this shift would save money and reduce “short-term thinking” in corporate leadership. According to Trump, American companies are too focused on immediate investor demands, while countries like China take a long-term approach to business planning.
Why It Matters in the U.S.
Quarterly reporting has been a cornerstone of U.S. financial transparency, providing investors, policymakers, and the public with regular insights into corporate performance. Critics of the system, including Warren Buffett and Jamie Dimon, have long argued that it pressures executives to chase short-term profits at the expense of long-term innovation and growth. Trump’s argument echoes these concerns, highlighting that reducing reporting frequency could allow companies to focus on strategy rather than appeasing the market every three months.
Potential Global Impact
If the U.S. moves toward six-month reporting, it would align with practices already adopted in the European Union and the United Kingdom. This could set a precedent that other economies may follow, further easing corporate reporting burdens worldwide. However, the shift would also reduce the frequency of market insights. Investors, regulators, and policymakers rely heavily on quarterly data to monitor trends, from airline demand to banking stability and technology innovation. Less frequent updates could increase uncertainty in financial markets, potentially leading to sharper swings in global stock prices when earnings are finally released.
The Balance Between Flexibility and Transparency
For global markets, the debate highlights a delicate balance: reducing regulatory red tape could improve efficiency, but it might come at the cost of transparency. Emerging economies that depend on U.S. financial signals may face delayed insights into economic conditions, complicating trade and investment decisions. Furthermore, in fast-changing industries like artificial intelligence or energy, waiting six months for official updates could slow down innovation and market responsiveness.
Conclusion
Trump’s call to eliminate quarterly reporting is not without merit, as it reflects a genuine concern about the culture of “quarterly capitalism.” Yet the broader implications suggest a trade-off between long-term corporate flexibility and the transparency that fuels global economic stability. If implemented, this policy could reshape corporate governance not only in the U.S. but also influence reporting norms across the world economy.
Economic Studies Unit / North America Office
Al-Rabetat Center for Research and Strategic Studies