Israeli Researcher Sparks Heated US Debate Over SEC Proposal to Cut Quarterly Reports
A controversial legislative proposal by the US Securities and Exchange Commission (SEC) to allow public companies on Wall Street to report semiannually instead of quarterly has ignited intense debate. Central to this discussion is a study by Israeli CPA and academic Dr. Keren Bar-Hava, whose research on the effects of semiannual reporting by companies in Israel has been cited by both supporters and opponents of the SEC initiative.
Dr. Bar-Hava, head of the Accounting Department at the Hebrew University Business School and a member of the Israeli Accountants Council, conducted her research based on regulatory changes in Israel that allowed smaller public companies to choose semiannual reporting. Her findings revealed that while semiannual reporting reduced audit costs by about 19%, it also led to decreased transparency, weaker corporate governance, and a negative market reaction, with investors pricing in a higher risk premium and stock prices dropping by approximately 2.5%. Companies that continued quarterly reporting saw stock price increases of around 2% above the market.
The SEC’s May 2026 proposal, supported by former President Donald Trump, aims to reduce costs and discourage short-term managerial focus by permitting all public companies, regardless of size, to opt for semiannual reports. However, the proposal has faced overwhelming opposition, with over 200,000 public comments, 99% opposing the change, citing concerns over reduced transparency and increased insider trading risks. Critics argue the SEC selectively used Bar-Hava’s research, highlighting cost savings while ignoring the negative impacts on investor trust and governance.
Dr. Bar-Hava, who has served on the Israeli SEC and as a director in several companies, has become a sought-after expert in the US amid this debate and may be invited to testify after the public comment period ends. Meanwhile, she notes that unlike in the US, there is little public discussion of this issue in Israel. The SEC is expected to analyze the extensive feedback before making a final decision on the reporting requirements.
Summary: Israeli researcher Dr. Keren Bar-Hava’s study on semiannual financial reporting is central to a heated US SEC debate over a proposal to eliminate mandatory quarterly reports for public companies. The research shows cost savings but warns of reduced transparency and investor trust, fueling widespread opposition to the SEC’s plan supported by Donald Trump.
