U.S. President Donald Trump stated on the 15th (local time) that U.S. companies should extend their earnings reporting cycles from quarterly to semi-annually.

In a post on his social media platform Truth Social that day, President Trump argued, "Companies should report semi-annually, not be forced to report quarterly, though I'm sure the SEC will need to approve this."

He emphasized, "This will not only save money but also allow executives to better focus on running their companies."

President Trump pointed out, "You hear about China running companies on a 50 or 100-year basis, whereas our companies are running on a quarterly basis. This is not good."

This is interpreted as an attempt to reduce reporting frequency, increase management flexibility, and cut costs, based on the perception that executives focus on short-term performance, hindering the formulation of long-term strategies.

This is not the first time President Trump has advocated for changing corporate earnings reporting cycles to semi-annual.

During his first term in 2018, he posted on Twitter (now X) that a global business executive had said, "Stop the quarterly reporting and go to the 6-month system." He added, "I have asked the SEC to study this system."

The United States has operated a quarterly earnings reporting system for publicly traded companies since 1970, and switching to semi-annual reporting would align with the reporting practices of several European countries, according to the online media Axios.

President Trump answering reporters' questions. Reuters Yonhap News. 

Yonhap News