Should publicly traded companies be required to continue to release quarterly 10-Q financial reports as they’ve done for almost 50 years, or would less frequent reporting suffice?
It’s a question the Securities and Exchange Commission has been asking, starting with a request for comment released last December, which was prompted by a White House request that suggested a six-month reporting system, like some European countries. That was followed in late July with a two-part SEC-moderated roundtable of asset managers, corporate executives, academics, institutional investors and representatives of the Nasdaq and New York Stock Exchange.
(Related: SEC Seeks Comments on Earnings, Quarterly Report Changes)
“We recognize the importance of this information to well-functioning and fair capital markets,” said SEC Chairman Jay Clayton when the commission published its request for comment. “We also recognize the need for companies and investors to plan for the long term. Our rules should reflect these realities.”
Now the CFA Institute has released a report showing the results of a survey that asked several hundred analysts and portfolio managers — its members most concerned with corporate reporting requirements — for their views on the frequency and content of corporate financial reporting along with the results of a roundtable on the issues. About 700 members — 70% in the U.S. and Canada — were surveyed for most questions but not all answered every question.