The U.S. Securities and Exchange Commission proposes to eliminate quarterly financial reporting requirements, allowing publicly traded companies to switch to semi-annual reports.

Golden Finance reported that on May 6, the U.S. Securities and Exchange Commission (SEC), local time on Tuesday, proposed to end the quarterly financial reporting requirements for U.S.-traded companies, allowing them to switch to semi-annual reports. Trump first floated this idea during his first term and made it a government priority again last September. In a statement on Tuesday, SEC chair Atkins said, “The rigidity of SEC rules makes it impossible for companies and their investors to independently determine the most suitable frequency for interim reports for their business needs and investor interests.” The move received support from many companies and investment banks such as JPMorgan Chase, which believe that quarterly reporting creates a heavy and costly burden for businesses. They also said that quarterly reporting encourages corporate short-termism, comes at the expense of long-term planning, and has been one of the factors behind the sharp decline in the number of U.S. listed companies over the past decade. (Jin10)