Do Firms Round Up Operating Cash Flows?

This study examines the rounding phenomenon in operating cash flows for firms listed three major U.S. stock exchanges (i.e., New York Stock Exchange, NASDAQ, and American Exchange) Over-the-Counter (OTC) market. It finds that round￾up earnings, but they do not round-up flows; while OTC market both earnings flows. Overall, results from this provide consistent evidence have incentives to round up paint a rosy picture of firms’ performance; however, it is more difficult than earnings. Therefore, an environment where rules disclosure requirement strict exchanges), opportunities are less market), actually practice.