Investor groups have reportedly expressed their support for the continuation of quarterly reporting by publicly traded companies in response to a proposal advocating for semiannual reporting.
The investment industry is pushing the U.S. Securities and Exchange Commission (SEC) to uphold the current requirement for quarterly reports from publicly listed companies, Reuters reported on Tuesday. Most public comments on the proposal submitted by Monday’s deadline supported keeping the current quarterly reporting requirement.
The feedback to the proposal allowing companies to switch to semiannual reporting underscores a split between investor demands for increased disclosure and corporate boardrooms’ wish to ease the pressures of earnings season.
Investors maintain that their requirement for corporate disclosures to make informed investment decisions surpasses any advantages companies might reap from decreased reporting obligations. Currently, companies are obligated to pay for the computation and auditing of their operating results every three months, an expense they are keen to reduce.
The Investment Company Institute said a survey of 14 members managing $6.1 trillion in assets found that 91% consider quarterly reports important, with 62% rating them highly important and 29% moderately important. Respondents said quarterly earnings statements and management discussions are especially valuable for evaluating companies’ financial health and operating performance.
