5 ms·
Perhaps the solution is more reporting instead of less reporting. Some sort of real time (or hourly, daily, whatever) metrics about a company instead of quarter
by oilman 7y ago
Perhaps the solution is more reporting instead of less reporting. Some sort of real time (or hourly, daily, whatever) metrics about a company instead of quarterly reports. I feel like a certain frequency makes it harder to game, and much more routine, so people aren't as likely to make decisions that are detrimental to the long term. I think faster reporting and quicker feedback loops are the way the world is going, why not for public markets?
- Traster 7y agoThe problem with reporting is it's actually a liability. You're legally responsible for reporting accurately to shareholders so there's a non-trivial amount of work to ensure you get it right. You could do that in real-time but there would be a significant overhead to it. There are also other problems, for example the sales team will always make sure their paperwork is completed in time for the end of quarter to hit their targets, if you're reporting continuously you're going to see a lot more noise in the sales reporting figures that gets averaged out by only reporting the quarter. You aren't gaining information by reporting more often, you're just exposing your investors to a noisier signal.
- roguecoder 7y agoBut wouldn't that be more productive for the business to have people always producing value, rather than rushing things in for a deadline and slacking off immediately afterwards?