It will be tough for Trump's SEC to overhaul reporting rules

How earnings calls go bad

But he did say the SEC Division of Corporation Finance "continues to study public company reporting requirements, including the frequency of reporting".

In a tweet early Friday, Trump said that after speaking with several 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.

The SEC has been reluctant to make changes in quarterly reporting, which has always been a cornerstone of U.S. capital markets.

Abolishing the rule would "allow greater flexibility & save money" for businesses, Mr. Trump tweeted. At a July rally in Florida, he said the chief executive of "one of the greatest companies in the world" urged him to press his tariff fight even though it would impact his business.

While Trump can not force Clayton to make changes, as a matter of courtesy the SEC chairman may promise to study the issue.

Some investors on Friday said quarterly disclosures were essential to making informed investment decisions and supported richer US valuations, and that shares could become more volatile if companies report only twice yearly.

SEC spokesmen didn't respond to requests for comment.

Trump said the issue was brought to his attention recently by Indra Nooyi, the chief executive officer of PepsiCo Inc.

More news: Turkey will emerge stronger from lira crisis despite row with USA : minister

The reports can be found on the SEC's website.

Since the Securities Exchange Act of 1934, public companies in the United States report their earnings each quarter.

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 short-term performance and stock price gains.

But scrapping quarterly reporting is not on the SEC's near-term agenda, according to public records.

Billionaire investor Warren Buffett and JPMorgan Chase & Co Chief Executive Jamie Dimon wrote in the Wall Street Journal in June that USA companies should move away from giving quarterly guidance, arguing it holds back spending on hiring, investment and research, but did not call for an end to quarterly reporting.

He said when companies report only twice a year, the reaction in markets to their results is typically more volatile than the reaction to quarterly results. Less-frequent public disclosures could hand another advantage to sophisticated investors with easy access to corporate executives, corporate governance experts said.

"Investors and other stakeholders benefit when regulations ensure that important information is promptly and transparently provided to the marketplace", said Amy Borrus, CII's deputy director.

The US Chamber of Commerce and other lobbying groups have also blamed compliance burdens for preventing more companies from selling shares.

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