The U.S. Securities and Exchange Commission’s proposal to eliminate mandatory quarterly earnings reports has encountered overwhelming resistance from the investment community, with more than 99% of investors opposing the measure.
The backlash suggests the regulator’s attempt to reduce corporate reporting burdens may face significant hurdles in gaining final approval.
The SEC’s rule change would allow public companies to file semiannual reports using a new form, the 10-S, instead of the traditional quarterly 10-Q filings.
While the agency argues that less frequent reporting would lower compliance costs and reduce short-termism, investors view the move as a dangerous erosion of transparency.
The near-unanimous opposition highlights a fundamental disconnect between the regulator’s efficiency goals and the market’s demand for timely data.
This development follows the SEC’s formal proposal earlier this year to overhaul the disclosure framework.