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The Committee for Economic Development says it's time to drop quarterly guidance.

"Quarterly guidance is at best a waste of resources and, more likely, a self-fulfilling exercise that attracts short-term traders," says the report by the group, which was brought together by the Committee for Economic Development, a Washington think-tank.

"The pressure associated with quarterly earnings guidance has been cited as one of the factors fuelling the boom in private equity buy-outs," adds the report by the CED, whose members include influential figures such as Pete Peterson, co-founder of the private equity group Blackstone and William McDonough, former head of the New York Federal Reserve.

More than half of US listed companies provide their own forecasts of quarterly results – a practice that is illegal in most other countries.

Posted by edelfenbein at June 28, 2007 1:27 PM