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Corporate reporting - move from quarterly to semiannual reporting?
Posted on 8/17/18 at 6:50 am
Posted on 8/17/18 at 6:50 am
Quarterly reporting is cited as diverting attention from long-term growth objectives, and instead encouraging inappropriately high, short-term focus on public companies. There is also substantial cost involved with more frequent reporting.
Trump recently met with Tim Cook and others. Apparently, they suggested semiannual reporting. Trump is now asking the SEC to consider options in that regard.
Good? Bad? Doesn't matter?
Trump recently met with Tim Cook and others. Apparently, they suggested semiannual reporting. Trump is now asking the SEC to consider options in that regard.
Good? Bad? Doesn't matter?
quote:Selfishly, I prefer more information rather than less. So as an investor, I'd favor leaving quarterly reports intact.
Donald J. Trump@realDonaldTrump
8m8 minutes ago
In speaking with some of the world’s top business leaders I asked what it is that would make business (jobs) even better in the U.S. “Stop quarterly reporting & go to a six month system,” said one. That would allow greater flexibility & save money. I have asked the SEC to study!
11
Posted on 8/17/18 at 6:51 am to NC_Tigah
Posted on 8/17/18 at 7:17 am to NC_Tigah
From an external audit perspective. I work at a big 4 in more of a consulting role, but I know a lot of the audit guys. On some of these huge complex audits it's just nearly impossible to get everything done for all the required reporting. For annual reporting they are almost literally living in the office and when it gets down to the last days they are pretty much just signing stuff because it has to be done, but they didn't have to time to really do it. I do think this move will help that a little, and i don't think there will be much loss of useful information.
Posted on 8/17/18 at 7:27 am to NC_Tigah
I think it's a net zero at worst for investors. What you lose in information you make up for in presumably lower volatility and slightly better longer term planning.
Posted on 8/17/18 at 7:33 am to NC_Tigah
If you’ve ever worked on a performance based system you would favor semi-annual reporting.
Elon Musk made a lot of sense when he tweeted out about this a couple weeks ago.
Elon Musk made a lot of sense when he tweeted out about this a couple weeks ago.
Posted on 8/17/18 at 9:41 am to NC_Tigah
There are good and bad things to this. His tweet is correct, quarterly reporting disincentives investment. On the downside, you lose some transparency of the process.
Having worked at a mega large company that consistently missed its numbers, I say move to half a year. They would do insane shite to make their EPS numbers which would hurt long term growth. For instance, I got laid off (along with thousands of others) so they could dump a bunch of cost in one particularly bad quarter. They then rehired my position, then they laid that person off a year later. It was fricking insanity if you ask me. What is crazy is they would rehire me in a snap, and they would probably pay more than they did.
eta: I ended up starting my own business after getting laid off and its been fricking awesome. I work less, get paid more, travel less. although obamacare fricking blows chunks.
Having worked at a mega large company that consistently missed its numbers, I say move to half a year. They would do insane shite to make their EPS numbers which would hurt long term growth. For instance, I got laid off (along with thousands of others) so they could dump a bunch of cost in one particularly bad quarter. They then rehired my position, then they laid that person off a year later. It was fricking insanity if you ask me. What is crazy is they would rehire me in a snap, and they would probably pay more than they did.
eta: I ended up starting my own business after getting laid off and its been fricking awesome. I work less, get paid more, travel less. although obamacare fricking blows chunks.
This post was edited on 8/17/18 at 9:43 am
Posted on 8/17/18 at 10:05 am to NC_Tigah
DJT just said the suggestion came from Indra Nooyi, outgoing Pepsico CEO.
Posted on 8/17/18 at 10:11 am to NC_Tigah
I posted about this yesterday in the Walmart thread. It's insane.
Posted on 8/17/18 at 10:21 am to castorinho
quote:
I posted about this yesterday in the Walmart thread. It's insane.
Insane meaning quarterly reporting is crazy or insane meaning semi annual reporting would be crazy?
Posted on 8/17/18 at 10:39 am to slackster
The expectations (quarter to quarter) are insane.
Posted on 8/17/18 at 11:08 am to castorinho
quote:
The expectations (quarter to quarter) are insane.
Yeah but I'd think semi annual would have more volatility? Let's say a stock is going to go up or down 10% in a year, so 2.5% a quarter would mean 5% semi annually given all parameters are the same. Historically all quarters are not the same.
At the same time, I'd think this may help long term mutual fund/ ETF investors while hurting the short term day traders right?
Posted on 8/17/18 at 11:13 am to NC_Tigah
nm
This post was edited on 5/21/20 at 2:34 pm
Posted on 8/17/18 at 11:15 am to NC_Tigah
Doesn't the EU already do this? I work at a F500 and the resources devoted to the never-ending quarterly reporting hamster wheel will make your eyeballs bleed.
Posted on 8/17/18 at 11:59 am to sneakytiger
I don’t think so. My company is publicly listed on a German exchange and they release quarterly results.
Posted on 8/17/18 at 12:02 pm to baldona
quote:
Yeah but I'd think semi annual would have more volatility?
Idk. I'd say the semi annual reporting would allow for a smoother overall year. A good or bad quarter won't stick out as much and you're given a chance to right the ship.
Posted on 8/17/18 at 12:07 pm to slackster
quote:
Idk. I'd say the semi annual reporting would allow for a smoother overall year. A good or bad quarter won't stick out as much and you're given a chance to right the ship.
Eh, disagree. The less often you report, the more of a swing you would have. Long term it won't matter as much I wouldn't think. Who cares about Q3 in 2014 or Q1 in 2010 now? But I'm simply saying that if your semi annual report is bad, that's worse than having a bad Q1.
Will fewer reports absolutely save money? I'm honestly asking, makes sense it would. Any change is always going to have positive and negative affects. I'm just trying to think outside of the box.
ETA: Sure I understand that more reporting requires more time spent, but that's not always a bad thing. It means more audits, catching more negative issues faster, and more analysis.
Fewer reports will lead to fewer issues caught I mean. Probably worth it? But its not like it will be 100% better.
This post was edited on 8/17/18 at 12:10 pm
Posted on 8/17/18 at 1:09 pm to baldona
quote:
Eh, disagree. The less often you report, the more of a swing you would have. Long term it won't matter as much I wouldn't think. Who cares about Q3 in 2014 or Q1 in 2010 now? But I'm simply saying that if your semi annual report is bad, that's worse than having a bad Q1.
Yes, but if your semi annual report is bad, it's likely due to back to back quarters.
I get what you're saying about two major moves a year instead of four moves at half those rates, but I believe the semi annual reports would be less volatile than the sum of their parts.
Posted on 8/17/18 at 1:28 pm to NC_Tigah
US Federal agencies report their balances to Treasury every month, and cash transactions every day.
Y'all are a bunch of slackers.
Y'all are a bunch of slackers.
Posted on 8/17/18 at 2:17 pm to foshizzle
quote:
US Federal agencies report their balances to Treasury every month, and cash transactions every day.
Y'all are a bunch of slackers.
1) The federal govt hasn't had a clean audit in well over a decade.
2) There is way more to quarterly reporting than reporting balances.
Posted on 8/17/18 at 2:57 pm to sneakytiger
quote:
Doesn't the EU already do this?
I think most of the world's publicly traded companies are on a less frequent cadence than the US. I know EU and Australia are both semi-annual, think China is annual with lite disclosures quarterly.
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