U.S. companies' quarterly earnings reports… Trump: "Should change to semiannual"

U.S. President Donald Trump proposed changing the reporting cycle for U.S. companies' earnings from quarterly to semiannual.

On the 15th (local time), Trump said on Truth Social, "(Semiannual reporting) would not only save costs but also allow managers to focus more on running the company." He added, "China runs companies with a 100-year perspective while American companies operate quarterly," and emphasized, "That is not desirable." It is interpreted to mean that under the current system U.S. companies will inevitably be preoccupied with short-term results and neglect long-term strategy formulation.

The market has raised concerns that while semiannual reporting could reduce the burden on corporate management, it would reduce opportunities for investors, regulators, and the public to access corporate information. This is because investors make asset management decisions based on that information, regulators detect financial crimes, and the public understands corporate activities. The Wall Street Journal (WSJ) pointed out, "Such a move is likely to face opposition from investors who rely on the transparency of regular disclosures and want more information," noting, "Although European listed companies are no longer obliged to report quarterly after regulatory changes in 2013, they still disclose results every quarter."

Kim Dong-hyun, reporter 3code@hankyung.com