Why I Disagree With A Semi-Annual Reporting Mandate (And It Probably Isn't The Reason That You Expect)

Last Friday, President Trump tweeted that he has asked the Securities and Exchange Commission to study stopping quarterly reporting and going to a six-month reporting system.  A few years back, I proposed a more free market approach:

"Why not simply let the market decide how often companies should file reports?  If the market truly values quarterly reporting, then companies will be rewarded for hewing to the traditional schedule.  Companies in other circumstances may pursue longer-term objectives.  Investors in those companies may prefer that those companies save money by eliminating the "nonevent" of a quarterly report. Moreover, a company that publicly announces its intention to report on a longer term basis is providing the market with valuable information - its commitment to the long-term growth of the company."

Rather than debate the merits of quarterly versus six-month reporting, let's find out what the market really wants.