The Relationship Between Earnings Round Up/Down And Global Financial Crisis: Evidence From Brics Markets

This study examines the rounding up/down behavior of selected key accounting figures in BRICS countries. It also examines the role of global financial crisis (GFC) on this rounding up or down of such key numbers. Five key financial figures (Revenue, Operating Income, Net Income, and Earnings per share (EPS), Dividend per share (DPS)) are studied during year 2000 to 2015. Results show rounding up/down is more prevalent in two markets, China and India, for positive as well as for negative profit firms during both periods. Brazilian, Russian, and South African markets are showing less rounding up/down of earnings figures during pre-GFC and also for post-GFC period.