SEC's Semiannual Reporting Proposal: Bull v. Bear | REPLAY

Research evidence excerpt

SEC's Semiannual Reporting Proposal: Bull v. Bear | REPLAY

Global | Washington Strategy June 8, 2026

SEC's Semiannual Reporting Proposal: Bull v.

Bear | REPLAY

Continuing our work on deregulation and semiannual reporting (see here

& here), we hosted LTSE's Susan Levitt and Martin Alvarez, and Shiva

Rajgopal (Columbia Business School). Implementation likely late '26/early '27.

Bull (LTSE): quarterly reporting distorts decisions, diverts mgmt bandwidth,

suppresses long-term investment. Bear (Rajgopal): compliance costs are

immaterial, UK shows no gain in fundamentals, reduced cadence could raise

volatility.

What's happening: The SEC proposed allowing U.S. public companies to voluntarily shift from

quarterly to semiannual reporting (see here). The Long-Term Stock Exchange filed the petition in

September 2025, and the Trump administration expressed support. The comment period closes

July 26, after which the SEC must vote, and the implementation would not require congressional

approval. Implementation would come in late 2026 or early 2027, and the proposal is widely

expected to pass. Speakers noted that the actual adoption would be gradual and that companies

would still file 8-Ks for material changes and remain subject to Reg FD.

Bull case—Susan Levitt & Martin Alvarez, Long-Term Stock Exchange

Quarterly reporting distorts corporate decision-making. Surveys show 80% of CFOs forgo•

strategic investments to meet quarterly targets. Small/mid-caps spend a couple of months

preparing for each earnings cycle, diverting management bandwidth from execution to

reporting, which may disproportionately affect innovation-heavy sectors.

Certain sectors and company types stand to benefit. Biotechs and early-stage firms operate•