There has been some debate in the US about reducing the amount of reporting requirements for public corporations from quarterly to semi-annually or even monthly. The Security exchange commission (SEC) has required companies to report quarterly results since 1970. Many corporations have lobbied the government to reduce reporting requirements, but many investors are in favour of maintaining quarterly results. A 2011 paper in the Journal of Accounting and Economics examining the period from the early 1950s, when companies were only required to file annual reports, to the 1970s, when they were required to report quarterly, found that companies cost of capital was lower when they reported more frequently. What would be some of the benefits from reducing the frequency of reporting from both a firm perspective and market perspective? Why would reducing the frequency of financial reports have the potential to raise the cost of capital?