Trump Proposes Shift to Biannual Reporting for Companies

U.S. President Donald Trump has reignited the debate over corporate financial reporting by advocating for a shift from quarterly to biannual disclosures. This proposal, announced on September 16, 2025, aims to reduce costs for companies and allow management to concentrate on long-term operations. However, experts express concerns over the implications of such a change.

During his first term, Trump raised similar suggestions, but many industry analysts argue that quarterly reporting is essential for maintaining transparency with shareholders. Richard Leblanc, a governance expert at York University, believes that a lot can occur in just six months that companies need to communicate to their investors. He noted that reduced reporting frequency could diminish shareholder power, stating, “A lot can go south in six months.”

The call for less frequent disclosures comes at a time when investor expectations are increasingly geared towards real-time data. Carol Schleif, chief market strategist at BMO Private Wealth, emphasized the challenges of moving away from quarterly reports. She indicated that if companies were to limit their disclosures, investors might seek information from less reliable sources, thereby increasing market volatility.

The shift from quarterly to semiannual reporting is not a new idea. The European Union and the U.K. adopted quarterly reporting in the mid-2000s. However, by the 2010s, they reverted to a six-month reporting requirement. Despite this change, research indicates that many companies continued to provide quarterly updates voluntarily, reflecting a preference for regular communication with stakeholders.

Advocates for the proposed change argue that the financial burden of frequent reporting can be significant, particularly for smaller companies. They assert that less frequent disclosures could free up resources for firms to focus on innovation and growth. Nonetheless, the potential risks of reduced transparency present a compelling counterargument.

As the discussion unfolds, it remains clear that the implications of this proposed shift will be closely scrutinized by business leaders and investors alike. The future of corporate reporting could hinge on the balance between operational efficiency and the need for transparency in an increasingly complex financial landscape.