Investors push back on SEC plan to release corporate earnings less frequently
The U.S. government has pitched an obscure accounting rule change that has ignited a firestorm of opposition. If enacted, its effects might be felt from the capital markets to your retirement savings account. At issue is a proposal by the Securities and Exchange Commission that would scrap a long-standing requirement for registered companies to disclose their earnings every three months. Instead,…
The Securities and Exchange Commission (SEC) has proposed a change to a long-standing rule that requires publicly traded companies to release their earnings reports on a quarterly basis. If implemented, the proposal would allow companies to disclose their financial performance every six months instead. The SEC argues that this would reduce the costs associated with preparing financial statements and promote longer-term planning rather than a focus on short-term earnings.
However, the proposal has sparked a significant amount of opposition, with over 280,000 comments submitted in response to the initial release in May 2026. Most of these comments came from retail and individual investors, who are concerned that less frequent reporting would make it harder to monitor companies' performance and decision-making.
The lack of transparency could also make it more expensive for companies to raise capital, as investors may demand higher returns for the increased risk. The SEC is still evaluating the feedback before making a final decision on the proposal, which is expected by late 2026.
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