The Short-Termism Debate: Are There D&O Liability Issues Involved, Too? | The D&O Diary

In recent months, commentators from across the political spectrum, largely in response to perceived excesses of activist investors, have called for changes

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Dave Tate’s comments. This is an interesting discussion about short-termism and whether to do away with quarterly reports. I have to ask, will doing away with quarterly reports eliminate or significantly eliminate short-termism? Where is the authority for that argument in the U.S. market. Won’t short-term investing still exist, but without the benefit, if any, that quarterly reporting provides? Investors will simply look elsewhere for information. That also raises the question, what benefit does or might quarterly reporting provide? Do quarterly reporting and accounting reviews provide a benefit to investors. I tend to believe that at a minimum they help bring or keep some honesty, integrity and reliability in the system. As you will also know from my writings, I believe that a review engagement does provide some manner of assurances to investors, but just not in the form of an audit “opinion” as the courts have noted – but haven’t the court’s perhaps gotten some of that analysis wrong?

Dave Tate, Esq. (San Francisco/California),