Companies planning to embrace the biannual reporting instead of quarterly, a proposal revived by President Donald Trump, may encounter investor backlash, an expert has warned.
Sam Rines, macro strategist at WisdomTree Asset Management, told Reuters that companies dropping quarterly reporting could face selling pressure and valuation cuts from active investment managers.
“We want, we need, more information, not less,” Rines said.
Rines added that this shift would be “a tough sell” to corporate boards, as they weigh cost savings against the potential perception of increased risk by investors.
The U.S. Securities and Exchange Commission (SEC) did not immediately respond to Benzinga‘s request for comment.
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