by Philip Augar for The Financial Times
Two very different companies made significant announcements last week. National Grid, the UK utility company, said it would no longer issue formal quarterly reports — an important piece of news for its investors, who took it in their stride. The next day, Apple gave its regular quarterly update. Investors sent the company’s share price soaring after learning that strong holiday sales pushed it to the largest profit of any public company in history.
The investors’ reactions raise two questions. Is the economy better served by frequent corporate reports, or by statements when meaningful events occur? And does the timing of reports contribute to short-term attitudes among investors and corporations? Read more here.