CFO Slice

A majority of investment analysts and portfolio managers oppose the SEC's proposal to replace mandatory quarterly financial reporting with semiannual reporting, according to a new CFA Institute survey of more than 2,500 investment professionals. Sixty-two percent of respondents opposed reducing the reporting frequency, while 70% opposed allowing companies to choose their own reporting schedules, citing concerns that inconsistent reporting would make it more difficult to compare companies and industries. Most respondents also said that, if semiannual reporting is adopted, companies should still be allowed to voluntarily report quarterly, although only about one-third believe most companies would continue doing so. Nearly three-quarters of respondents said negative developments could take longer to reach investors, more than half worried that management would have greater opportunities to benefit from insider information, and many expected earnings releases to contain less information if Form 10-Q filings were eliminated.