Transparency is an important feature of healthy markets, and regular financial reporting from public companies helps promote transparency in US equities markets. So is more-frequent reporting inevitably better than less-frequent reporting? Not necessarily, says Chicago Booth's Haresh Sapra. More-frequent reporting may lead to greater price efficiency, but it can also dissuade certain types of companies from making R&D investments that generate innovation and add to those companies’ value over the long run. Although compliance costs are often cited as a reason to cut down on the frequency of corporate reporting, those costs are minuscule in comparison to the value those would-be innovators forego as they try to keep quarterly profits in line with analysts’ expectations.