Trump's Shift on Corporate Reporting Finds Unexpected Support

In an unanticipated twist, President Donald Trump's proposal to transition from quarterly to semi-annual corporate reporting has found approval among international investors focused on sustainability. Trump's call aims to diminish short-termism, a sentiment echoed by finance luminaries like Warren Buffett and Jamie Dimon. The shift aligns with global trends encouraging transparency in sustainability commitments.

The move could help investors advocating for long-term strategies, noted David Pitt-Watson, a corporate governance expert. By potentially reducing closed periods and fostering a focus on longer-term investments, the change could enhance sustainability reporting standards. However, the legal alteration may challenge the U.S. due to structural and regulatory differences, requiring new safeguards to ensure transparency.

The reactions are mixed, with some European and Australian investors pointing out that their markets have thrived under such a reporting framework, while emphasizing the differences in regulatory environments. Closing the gap on profit warnings and other disclosures remains a concern, suggesting the necessity of protective measures to mitigate transparency risks.

(With inputs from agencies.)