The Indicator from Planet Money Should we ditch quarterly earnings reports?
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Oct 21, 2025 The debate around quarterly earnings reports heats up as the Trump administration suggests shifting to semiannual releases. Explore the history of U.S. reporting requirements and their impact on investor decisions. Discover how reducing reporting frequency could combat managerial short-termism and encourage long-term investments. Sustainability-focused investors may welcome this change too. Yet, some argue that frequent updates enhance market stability. Delve into the pros and cons as the SEC re-evaluates reporting practices.
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Short Reports Encourage Short-Term Thinking
- Quarterly reporting can cause managerial myopia, pushing leaders to favor short-term gains over long-term investments.
- Research shows increasing reporting frequency reduced annual capital investment by about 1.5% between 1950–1970.
Filings Have Grown Much Larger
- Modern quarterly filings are far more detailed and longer than decades ago, covering debt, lawsuits, and more.
- That added complexity raises compliance costs and administrative burden for companies.
Less Reporting Could Boost Long-Term Moves
- Moving to semi-annual reporting could encourage longer-term investments and sustainability planning.
- Some climate-focused investors support less frequent reporting to reduce short-term pressure on managers.