Trump Renews Push to End Quarterly Earnings Reports – Could the World Follow?

By BATV News Desk
September 16, 2025

U.S. President Donald Trump has reignited debate over corporate disclosure practices by renewing his call for American companies to report earnings every six months instead of quarterly. The proposal, announced on Truth Social, marks a potential turning point for corporate America and could ripple across global markets if adopted.

Trump’s Case for Change

President Trump argued that moving from quarterly to semiannual reporting would reduce compliance costs and free executives to focus on long-term strategy rather than short-term stock market expectations.

“This will save money, and allow managers to focus on properly running their companies,” Trump stated. The U.S. Securities and Exchange Commission (SEC) swiftly responded, confirming that it is prioritizing the proposal and signaling stronger alignment with Trump than in 2018, when similar calls failed to progress.

Divided Opinions on Transparency

The proposal touches on a longstanding tension: corporations often complain that frequent reporting encourages short-termism, while investors stress that quarterly data underpins transparency, accountability, and the U.S. stock market’s global reputation for efficiency.

Nasdaq CEO Adena Friedman welcomed the move, saying it could reduce the “friction, burden and costs” of listing in the U.S. Meanwhile, transparency advocates warned that longer gaps between disclosures could lead to delayed revelations of financial troubles, thereby increasing market volatility.

Investor groups like the Council of Institutional Investors have previously argued that quarterly reporting ensures that market participants—particularly pension funds and retail investors—can make informed and timely decisions.

Historical and Market Context

Quarterly reporting in the U.S. has been the norm since 1970, when the SEC shifted from semiannual disclosures. Advocates of reform, including billionaire investors Warren Buffett and Jamie Dimon, have long argued that quarterly pressures skew corporate decision-making away from innovation and long-term growth.

Yet critics point out that the very premium U.S. equities command over their global peers—trading at significantly higher multiples than European stocks—is partly due to the transparency that quarterly reporting provides.

The Global Dimension

If the U.S. adopts six-month reporting, the move could influence global corporate governance standards. The United Kingdom and several European Union countries already operate under semiannual reporting, suggesting that a U.S. shift might encourage convergence toward a more uniform international standard.

However, the global implementation of such a policy raises complex questions. Emerging markets with weaker regulatory frameworks may see reduced transparency if they follow suit, potentially eroding investor trust. In contrast, developed markets with strong regulatory institutions could benefit from aligning reporting cycles, lowering costs for multinational firms operating across borders.

International investors may also weigh the trade-off between reduced reporting burdens and heightened risk. For some, fewer disclosures may make U.S. equities less attractive compared to regions where quarterly insights remain the norm. For others, the policy could help recalibrate global capital markets toward longer-term value creation.

What Lies Ahead

While the SEC’s support suggests the proposal has momentum, securities law experts caution that companies may continue providing quarterly updates voluntarily to satisfy investor appetite for information. “Overwhelmingly the practice would stay just as it is,” predicted M. Todd Henderson of the University of Chicago, underscoring the possibility that markets—not regulators—will dictate the ultimate outcome.

Should the U.S. move forward, the debate will likely extend beyond Wall Street, influencing global conversations on corporate governance, market transparency, and the balance between long-term vision and short-term accountability.

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