Israeli Researcher Embroiled in SEC Dispute

A heated debate is underway in the U.S. over a legislative initiative presented by the U.S. Securities and Exchange Commission (SEC). The SEC seeks to change the reporting obligations of publicly traded companies on Wall Street and let them report semi-annually only, without submitting quarterly reports as currently required by law.

At the heart of the debate is a study by Dr. Keren Bar-Hava, a senior Israeli CPA, researcher, and director. The study, published several years ago, examined the implications of semi-annual reporting for companies.

The study shows that semi-annual reporting leads to lower audit costs for companies, but also reduces transparency, public trust, and weakens corporate governance. Both sides of the debate – the initiators of the legislation and its opponents – use the study to support their opposing positions.

Dr. Bar-Hava is head of the accounting department at the Hebrew University School of Business Administration and also serves as a member of the Israeli Council of Certified Public Accountants. Her research focuses on market efficiency, corporate governance, fair value versus cost, and more.

The study was conducted in response to changes in Israel regarding the reporting obligations of companies. In Israel, large public companies are required to report quarterly, while smaller companies are allowed to report semi-annually.

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The SEC published the proposal in May 2026 under the agenda “Make IPOs Great Again.” The proposal gives all public companies the freedom to choose to report in a semi-annual format. A company that chooses to do so will submit one semi-annual report and one annual report, instead of quarterly reports.

The reaction of the U.S. market to the bill was significant, with over 200,000 letters from the public – the highest volume of responses in the history of the authority. Most of the responses were negative and opposed the bill.

Senior legal experts in the U.S. from Harvard and Columbia criticized the SEC, claiming it engaged in “cherry-picking.” They took only the part of the study that suited them, which is great because accountants are paid less money, and they are now being attacked in the U.S., says Dr. Bar-Hava.

The public comment period ends this month, and the SEC is expected to analyze the hundreds of thousands of responses before deciding on the law. Since the bill was published, Dr. Bar-Hava has become a sought-after interviewee in the U.S. and may even be invited to discuss the legislation after the objection phase ends at the end of the month.

The U.S. is heavily debating the proposal. In contrast, Israel seems to have little discussion about it. Dr. Bar-Hava notes the lack of discussion at the Israeli Securities Authority and wonders what conclusions, if any, have been drawn in Israel regarding the reporting obligation, which relates to strategic plans for regulatory bodies.