Trump targets quarterly reports

WASHINGTON — President Donald Trump is calling on federal regulators to consider scrapping the requirement for public companies to report quarterly results, after business executives told him twice-yearly reports would make better economic sense.

In a tweet Friday, Trump said that after speaking with top business leaders, he’s asking the Securities and Exchange Commission to determine whether shifting to a six-month reporting requirement would help companies grow faster and create more jobs.

For companies, “That would allow greater flexibility & save money,” Trump tweeted.

Trump later told reporters the idea was especially urged on him by Indra Nooyi, CEO of PepsiCo, who led the food and beverage giant during a turbulent time in the industry.

Quarterly financial reports are a staple of U.S. corporate practice. The SEC requires public companies to report profit, revenue and other figures publicly every three months. The requirement dates to the establishment of the agency in the Great Depression, as a way to give investors confidence in company information.

Experts have long asserted that the practice of companies publicly forecasting every quarter how they expect earnings to shake out puts too much stress on shortterm performance and stock gains. That can pressure executives to engage in reckless practices to hit quarterly targets or even to manipulate earnings reports.