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The Case Against Quarterly Reporting By Public Companies– Part 1, The Fundamentals

1. U.S. to modify 55-year rule on quarterly financial reporting. 2. Quarterly earnings pressure causes short-termism and affects long-term growth decisions. 3. Semiannual reporting may improve performance and reduce market inefficiencies. 4. Concerns exist over market manipulation due to the current quarterly system. 5. Global peers have abandoned mandatory quarterly reporting for semiannual cycles.

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FAQ

Why Bullish?

Eliminating mandatory quarterly reporting could enhance long-term investments, positively affecting S&P 500 companies. A historical example includes the EU's repeal of quarterly reporting leading to improved corporate focus on long-term strategies.

How important is it?

The changes in reporting standards can significantly influence corporate governance and investment strategies, impacting overall market performance.

Why Long Term?

The transition might take several years, allowing companies to adapt to new reporting schedules and possibly improve their strategic focus.

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