If less frequent reporting requirements lure some private companies into public markets, then it could help both businesses and investors alike.
Once again, the president is questioning what purpose is served by publicly traded companies issuing quarterly earnings reports. Not only did Donald Trump raise this issue back in 2018 — so did Barack Obama in 2015.
Which just goes to show that the arguments against quarterly financial reports are neither crazy nor new. It was not until 1970 that the US Securities and Exchange Commission required quarterly reporting, and it has not been required in the UK since 2014.
I have argued that more transparency is generally better. A more frequent flow of information can lead to fewer surprises, less market volatility and a lower cost of capital. It also leaves less room for fraud and other financial shenanigans.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
Photo by Nancybelle Gonzaga Villarroya/Getty Images