End Quarterly Earnings Reports? Here’s the Debate: Explainer

For more than 50 years, public companies in the US have been required to report earnings on a quarterly basis. That would change if a proposal by regulators allowing twice-yearly financial disclosures is adopted.

The US Securities and Exchange Commission said on May 5 that allowing semi-annual reporting would reduce some of the burdens of being a public company, a move that would, in the words of SEC Chairman Paul Atkins, “Make IPOs Great Again.” Companies could still choose to report quarterly.

But transparency is a hallmark of financial markets, and some analysts and investors would object to ...