Who wins and who loses from fewer corporate earnings reports

"State of play: It's unclear what prompted the president's call. Trump did pursue a similar change in 2018 - but proposed it too late to gain traction. This time, he has plenty of runway to see it through."

"What they're saying: In his post about the proposal, Trump cited a statement that "China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis? ? ? Not good! !!" "If this move from the administration is about emulating China-I didn't really realize that was the direction we were really wanting to take American capitalism," says Steve Sosnick, chief strategist at Interactive Brokers. The push comes as administration officials are set to meet with Beijing to discuss trade talks."

"The winners: The potential beneficiaries of the shift are those who don't want the expense or hassle of quarterly earnings. CEOs who would prefer not to deal with sell-side analysts and investors four times a year. Small-cap companies with fewer resources may breathe a "sigh of relief," by offering reports half as much, Sosnick said. Public markets, according to Dimon and Buffett, who argued that the pressure of quarterly earnings discourages firms from going public sooner. "It may help companies operate better," says Sean O'Hara, president at Pacer ETFs, because these firms can focus on long-term goals versus short-term earnings growth."

A proposal to reduce the frequency of corporate earnings reports from quarterly to less frequent disclosures has resurfaced, reviving a similar 2018 idea that previously failed to gain traction. The proposal invokes a contrast with China’s long-term corporate perspective, prompting critics to warn about emulating foreign governance models. Administration officials plan meetings with Beijing amid trade talks. Prominent financiers have argued that short-term earnings pressure harms the economy, and the UK has precedent for semiannual reporting. Potential beneficiaries include CEOs and small-cap companies, while fewer reports could increase volatility and disadvantage some market participants.

Read at Axios