10.12.18
SEC Chair Jay Clayton Says Quarterly Reporting Won't Change "Anytime Soon"
by: Dave Michaels
Public companies won't get a break from quarterly earnings reporting in the near term, according to SEC Chairman Jay Clayton. The SEC may weigh the idea of moving to six-month reporting for smaller firms, but “I don't think quarterly reporting is going to change for our top names anytime soon,” Clayton said at an event hosted by the Bipartisan Policy Center. Federal securities rules have required quarterly reporting since 1970, when the SEC mandated it as part of a formalization of stock-exchange practices that preceded the agency's creation in 1934. Clayton said quarterly earnings aren't “the sole driving factor” of some companies' short-term focus. “It's not just a question of whether we require quarterly reporting or not. What does the market expect?” After the event, Clayton told reporters that many investors seem satisfied with quarterly reporting and that less frequent disclosure could be disruptive.
Read the full article on Wall Street Journal