"It will also allow fund managers and analysts more time to go and meet the company (management) to do their analysis ... a lot of times, they have to wait because of the blackout period (during which the company can't talk until the results are out)," he remarked.He suggested that companies hold quarterly briefings to give investors a "snapshot" on how they are doing, rather than issue financial reports.
it is a good move to do away with quarterly reporting as firms will have more time "to run their business" rather than "scramble" to put out reports."
Tan Sri Krishnan Tan, executive deputy chairman of IJM Corp Bhd, said it is becoming "absurd" to put out financial reports every quarter as it isn't a fair reflection of how the company may be doing.
"It doesn't have a lot of meaning ... let's just go for half-year and year-end reporting," he said at a panel discussion on the SC's five-year Corporate Governance (CG) Blueprint, which was launched here yesterday.
quarterly reporting tends to promote short-term views
the European Union issued the European Union Transparency Directive in July 2007 which promotes half-yearly reports combined with Interim Management Statements issued between reporting dates.
More timely and more reliable information about the share issuer's performance over the financial year also requires a higher frequency of interim information. A requirement should therefore be introduced to publish an interim management statement during the first six months and a second interim management statement during the second six months of a financial year. Share issuers who already publish quarterly financial reports should not be required to publish interim management statements.