From The Conversation · Tzachi Zach · · 1m 30s
US Regulators Propose Less Frequent Earnings Reports
SEC wants corporate earnings reports less frequent but investors fear reduced transparency.
In brief
SEC wants corporate earnings reports less frequent but investors fear reduced transparency. US regulators propose scrapping quarterly earnings reports for companies but investors worry less frequent reporting will harm retirement savings and capital costs. Originally reported by The Conversation.
SEC Proposes Quarterly Reporting Change
The Securities and Exchange Commission wants registered companies to report earnings less frequently, from quarterly to semiannual intervals.
Over 280,000 Letters Oppose Change
More than 280,000 letters have been submitted against the proposal since it was released for comments in May 2026.
Investors Fear Reduced Transparency
Retail investors worry less frequent reporting will make it harder to monitor companies' performance and decision-making.
Higher Capital Costs Risk
Investors may demand higher returns due to less information, increasing costs for companies to raise capital.
Enron Retirees Share Concerns
Enron retirees wrote that quarterly reporting acts as a gatekeeper to prevent financial fraud from harming retirement savings.
“My husband worked for Enron. We lost most of our retirement savings when their fraudulent activity came to light”
SIFMA Warns of Capital Cost Increase
The Securities Industry and Financial Markets Association says reduced reporting could increase capital costs as investors demand higher risk premia.
Federated Hermes Notes Signaling Risks
Federated Hermes warns that semiannual reporting may signal reduced transparency, affecting analyst coverage and capital costs.
Eli Lilly and 58% of Companies Support Change
Drugmaker Eli Lilly and 58% of companies surveyed by Financial Executives International support semiannual reporting.
SEC Needs Two Votes for Rule Change
The SEC may change rules to require only two commissioners' votes to approve the semiannual reporting proposal by September 30, 2026.
The key point
US regulators propose scrapping quarterly earnings reports for companies but investors worry less frequent reporting will harm retirement savings and capital costs.
