Business reporting debate: Should quarterly updates end for small firms?

Quarterly vs. semi-annual reports: How often should businesses disclose finances?

The debate over how often companies should release financial reports is heating up. In the US, President Donald Trump has proposed scrapping quarterly reports, arguing that semi-annual statements would save small business ideas money and let managers focus on operations. Meanwhile, in Europe, the discussion continues over whether quarterly updates help or harm long-term business planning for entrepreneurs.

The issue divides investors, regulators, and corporate leaders, with some pushing for less frequent loans and others insisting on regular transparency.

In 2015, the European Union stopped requiring companies to publish quarterly reports. However, stock exchanges retained the right to set their own rules, and many firms still release full or near-complete updates every three months. This flexibility has led to mixed practices across the continent.

In Germany, opinions remain split. Investors, analysts, and shareholder advocates largely agree that large corporations should maintain quarterly reporting. But for medium-sized and smaller business ideas, many suggest semi-annual statements would suffice. Arne Rautenberg of Union Investment argues that quarterly reports encourage short-term thinking, while Benjardin Gärtner of DWS defends them as essential for transparency and investor protection.

Joachim Schallmayer of Deka criticises the growing reporting burden, particularly for smaller firms, and calls for a review of the rules. Marc Liebscher of DSW supports scrapping quarterly reports for companies outside the blue-chip index but stresses the need for strict ad hoc disclosures when major events occur. Pascal Spano of Bankhaus Metzler believes twice-yearly reporting is enough, provided companies meet ad hoc disclosure obligations.

Across the Atlantic, US Securities and Exchange Commission (SEC) Chair Paul Atkins has hinted at a possible relaxation of reporting rules. He suggests letting the market decide how often companies should update investors—a shift that could align with Trump’s proposal to move to semi-annual statements.

The push to reduce reporting frequency aims to cut costs and ease pressure on managers. Yet critics warn that less frequent updates could reduce transparency and harm consumer reports confidence. For now, the debate continues, with regulators, businesses, and investors weighing the balance between efficiency and accountability.