President Donald Trump said Friday that eliminating a requirement that public companies report their earnings to the Securities and Exchange Commission every quarter could help boost business growth.
Abolishing the rule would "allow greater flexibility & save money" for businesses, Mr. Trump tweeted. He added that he has asked the SEC to examine moving to a six-month reporting schedule, instead of the current system of reporting corporate results every three months.
The idea came from an unnamed "top business leader," Mr. Trump wrote, although the idea has been bandied around for decades. Many U.K. businesses have shifted to a six-month reporting schedule after the country's regulators eased requirements for quarterly reports.
The SEC "continues to study public company reporting requirements, including the frequency of reporting," said chairman Jay Clayton in a statement.
He noted, "The President has highlighted a key consideration for American companies and, importantly, American investors and their families — encouraging long-term investment in our country."
Famed investor Warren Buffett and JP Morgan Chase CEO Jamie Dimon earlier this yearfor ending quarterly reports, saying that companies that focus on hitting their numbers may make decisions that hurt their long-term prospects, such as delaying investments.