May I inquire how this could be a good thing? I feel like it could exacerbate problems, but I’m not well versed enough in macroeconomics to make an accurate assessment.
Quarterly reporting makes company leadership focus on short term gains over the long term health of the company, leading to frequent layoffs, selloffs and other actions that hurt both the employees and the economy as a whole.
Relatedly, people compensated mostly through stock options will continue to think short term with an emphasis on the stock price of the company for the duration of their particular vesting period.
We are talking about when they are required to release earnings not the only time they can. I’m pretty sure that lengthening the time wouldn’t really change anything as far as short term profit gain is concerned.
Like I doubt the quarterly earnings calls would go away, shareholders wouldn’t want to go a whole year without hearing from the company, they would just be a lot more lies and fluff.
May I inquire how this could be a good thing? I feel like it could exacerbate problems, but I’m not well versed enough in macroeconomics to make an accurate assessment.
Quarterly reporting makes company leadership focus on short term gains over the long term health of the company, leading to frequent layoffs, selloffs and other actions that hurt both the employees and the economy as a whole.
Quarterly reporting itself does not force this.
Relatedly, people compensated mostly through stock options will continue to think short term with an emphasis on the stock price of the company for the duration of their particular vesting period.
but then you would need to have reports once every 5 years to actually see much change in their strategies.
We are talking about when they are required to release earnings not the only time they can. I’m pretty sure that lengthening the time wouldn’t really change anything as far as short term profit gain is concerned.
Like I doubt the quarterly earnings calls would go away, shareholders wouldn’t want to go a whole year without hearing from the company, they would just be a lot more lies and fluff.