Friday, October 05, 2012

UK Labor Party Leader Urges End to Mandatory Quarterly Financial Reports

The leader of the UK Labor Party proposed to eliminate the requirement that companies issue quarterly financial statements in an effort to end short-term thinking. In  remarks to the annual party conference, Ed Miliband said that companies under pressure from City investors to produce short-term profits cannot take the long-term view. While companies want to plan one year, two years, and even ten years ahead, he noted,   they still have to publish their accounts in Britain every 3 months. In line with the wishes of the best of British business, the Labor Leader pledged to end that rule so companies in Britain can take the long term productive view. Mr. Miliband also noted that companies in Britain are far more easily bought and sold than in many other countries. When a corporate takeover is launched, he said, the hedge funds and the speculators can ``swoop in for a quick profit.'' In his view, they are not acting in the interests of firms or the nation, but rather are just in it for the ``fast buck.'' This is wrong, emphasized the Leader, and Labor will change it.