Finshots Daily President Trump dislikes quarterly results now?
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Sep 25, 2025 Explore the controversial debate surrounding quarterly earnings reports sparked by President Trump's proposal to abolish them. Delve into the history of reporting and its impact on investor behaviors. Understand how these reports can promote short-term thinking in companies, particularly in sectors like pharmaceuticals, where R&D suffers. Analyze Trump's argument that easing reporting burdens could foster more public listings and hear insights on the SEC's past hesitations. Finally, discover alternative solutions to address short-termism without sacrificing investor transparency.
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Quarterly Reports Are Snapshot Report Cards
- Quarterly reports are like business report cards that give snapshots of sales, expenses, profits, and cash flow every three months.
- Companies, investors and analysts rely on them to compare performance and guide decisions that move share prices.
Trump Blames Quarterly Reporting For Short-Termism
- Donald Trump argues quarterly reporting is costly and promotes short-termism among managers.
- He proposes reverting to semi-annual reporting to reduce compliance burden and refocus on long-term growth.
Quarterly Prep Consumes Time And Money
- Preparing quarterly results can take up to six weeks, consuming management time and resources.
- For small firms, compliance eats significant hours and money that could be used to run or invest in the business.