Financial Reporting Frequency and Market Premiums

One of the defining features of public equity markets is timely, accurate financial reporting. But the ideal reporting frequency remains a matter of debate: US public companies currently report quarterly, while other markets use different schedules. Transparency matters, but so does the cost of producing that information.

That debate is especially relevant today because the US Securities and Exchange Commission has proposed allowing public companies subject to reporting obligations under the Securities Exchange Act of 1934 to choose between quarterly and semiannual reporting. Companies considering a change in frequency will weigh several factors, including compliance costs, business model characteristics, industry norms, and investor expectations. For investors, the key question is whether less frequent reporting would increase uncertainty and thus affect the equity, size, value, and profitability premiums.

Because reporting rules have varied over time and across countries, in their June 2026 research paper Dimensional’s Mia Huang and Yuan Yao studied the issue by examining the US market across different periods and comparing global markets with different reporting requirements. Their US data covered the period July 1926-December 2025.

The US Historical Perspective

The US has not always required quarterly reporting. Mandatory annual reporting remained in place until 1955, after which semiannual reporting was required until 1969. The current quarterly mandate began in 1970. Mandatory reporting requires companies to disclose core financial statements, including the balance sheet, income statement, and cash flow statement. Unlike annual reports, interim filings are subject to limited review rather than a full audit. A full audit requires rigorous verification of assets and bank records, while a limited review relies on analytical procedures and management inquiries, providing timely updates with a lighter verification process.

If reporting frequency were a major driver of market premiums, we would expect to see clear structural breaks across these periods. Huang and Yao showed that average premiums vary over time, but the differences across reporting regimes are not statistically reliable.

Global Evidence: Markets With Quarterly vs. Semiannual Requirements

Huan and Yao also examined 42 developed and emerging markets with different reporting requirements and grouped them into three categories (mandatory, voluntary, semiannual) and based on regulations and observed reporting practices. The covered the period January 1975–December 2025.

• Mandatory quarterly: 22 markets where quarterly reports are mandatory

• Voluntary quarterly: 10 markets where semiannual reporting is required, but most companies report quarterly anyway.

• Semiannual: 10 markets where semiannual reporting is required, and most companies report only twice a year.

Across these different reporting environments, premium performance shows no discernible pattern. The size of the realized premiums differs from country to country, but the differences do not appear related to reporting frequency.

Investor Takeaway