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Lisa Bragança in CFO Brew on SEC Proposal to Eliminate Quarterly Reporting
Lisa warns that the change may not be as big a deal as many “experts” are predicting. The reason: investor expectations.
“There will be companies who opt into it, but I don’t think that huge companies will necessarily embrace it because they have investors who expect quarterly reports and are set up to do quarterly evaluations,” she told CFO Brew. “It may be a process over time that, once adopting this, more firms will transition into it, but I don’t think it’s going to be a deluge right away.”
But the business-as-usual approach would also create an awkward dynamic for smaller companies that might be considering a switch to semiannual reporting: There’s likely very little advantage to being an early mover, Bragança said.
Most people “like to see how things pan out for others first,” Bragança said. “There’s always the early bird gets the worm, but the early adopter gets the SEC investigation.”
https://www.cfobrew.com/stories/how-to-handle-the-semiannual-reporting-conversation