Are quarterly earnings report necessary? Maybe not

Published August 20, 2018

An article on Yahoo! News about a tweet on Friday by President Donald Trump asking the Securities and Exchange Commission to look into moving quarterly reporting for publicly traded companies to a six-month schedule reports a paper co-authored by Feng Gu, associate professor and chair of accounting and law in the UB School of Management, argues that earnings have lost most of their relevance to investors. “[A] devil’s advocate might argue that although the perfect earnings prediction gains have declined sharply over the past 30 years, the current 2 percent three-month return is not exactly chump change. True. But to obtain such gains, you do not need any intricate machinery to perfectly predict consensus beats and misses,” they write.

Read more: https://www.yahoo.com/news/trump-right-wanting-end-quarterly-earnings-reports-135011336.html

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