Quarterly earnings were mandated by the SEC in 1970 to increase transparency, and some analysts believe that changing the reporting schedule could lead to greater uncertainty and market volatility, while others see potential benefits for companies and investors.
I know what you mean, but the "Market" is blind. The "quarter economy" is an expression meaning the "short-sighted economy". But it's not quarterly reports causing the short-sightnedness.
If there are no quarterly reports, investors will just look for information elsewhere. All it will do is open the doors even more for corruption.
Yes, and I don’t buy the argument that management’s lack of focus can be excused by pressure from quarterly reports. I’m sure there are solid arguments in favor of that view, but it’s hard not to be cautious when so many changes are happening at once (e.g. the Fed).
But wouldn't this also help break the super short term pursuit of profits taking precedence over more sustainable business problem?
bear with me i have phrased the above horribly.
If there are no quarterly reports, investors will just look for information elsewhere. All it will do is open the doors even more for corruption.