Post #1762 by tjscott0 on the Macroeconomic Trends and Risks board

Personal Finance Topics / Macroeconomic Trends and Risks

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WSJ article:
https://www.msn.com/en-us/money/companies/the-rene...
Public companies in the U.S. have dutifully shared financial results with investors every three months for the past 50-plus years. A new proposal hopes to change that.

The Long-Term Stock Exchange plans to petition the Securities and Exchange Commission to eliminate the quarterly earnings report requirement and instead give companies the option to share results twice a year, the group told The Wall Street Journal.

It says the idea would save companies millions of dollars and allow executives to focus on long-term goals instead of worrying about hitting quarterly targets or prepping for earnings calls.

JPMorgan Chase CEO Jamie Dimon and legendary investor Warren Buffett co-authored a Journal op-ed that advocated moving away from reporting quarterly earnings estimates. The pair argued that companies hold back on spending and hiring to meet quarterly earnings forecasts.

Would such a proposal cause a CEO to innovate and invest in physical capital? Would stock buy backs be affected? Any impact upon stock speculation based on earnings?

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