Trump asks SEC to let companies file financial reports every six months

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President Trump wants regulators to study a move that would loosen the reins on public companies.

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.

"That would allow greater flexibility & save money", Trump said in a tweet.

The idea came from an unnamed "top business leader", Mr. Trump wrote, although the idea has been bandied around for decades.

The president did not name the leaders.

"In speaking with some of the world's top business leaders I asked what it is that would make business (jobs) even better in the U.S", Trump tweeted.

Critics of quarterly reporting say they encourage companies to excessively focus on short-term results rather than the long-term performance of public companies. The Commissioners' offices did not immediately respond to a request for comment.

Trump said the issue was brought to his attention recently by Indra Nooyi, the chief executive officer of PepsiCo Inc.

Even if the SEC concluded the change was a good idea, companies would likely stick with the current regime to avoid investor backlash, said Ed Yardeni, founder and chief investment strategist at Yardeni Research.

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Public companies must report their sales, profits and the state of the company's balance sheet every quarter.

It's a move that would benefit businesses and workers, the president said.

Billionaire investor Warren Buffett and JPMorgan Chase & Co Chief Executive Jamie Dimon wrote in the Wall Street Journal in June that US companies should move away from giving quarterly guidance, arguing it holds back spending on hiring, investment and research, but did not call for an end to quarterly reporting.

Still, Van Sinderen cautions, six months can be a long time for smaller companies - particularly those shouldering hard challenges - and can lead to other issues should those two reports differ drastically.

It "also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term", Musk said.

"Less frequent reporting can raise the cost of capital", he said. The most recent data from the United Kingdom shows that only 57 of the companies in the benchmark FTSE 100 index were still issuing quarterly reports as of September 2017, according to the Investment Association.

The U.S. Chamber of Commerce and other lobbying groups have blamed compliance burdens for preventing more companies from selling shares.

"Investors need timely, accurate financial information to make informed investment decisions", Amy Borrus, deputy director of the Council of Institutional Investors, said in a statement.