Research On Earnings Management Of Listed Commercial Banks In China

Earnings management involves a series of finance problem, the research on it plays a very important role for the supervision of capital market, especially the research on earnings management of listed commercial banks has a positive meaning to promote investor protection and strengthen the supervision of commercial banks.. Along with the listed process of commercial banks in China accelerate ceaselessly, information disclosure requirements are also raising. Faced with the market and many stakeholders, the earnings management will inevitably exist.First, this paper discussed the commercial banks earnings management characteristics, motives, means and impact factors. Second, this paper tested whether the earnings management motivation existed or not. Then, this paper discussed the surplus means of China’s listed commercial banks earnings management. Finally, based on Specific Accrued Models, this paper further estimated the extent of earnings management of listed commercial banks in China, and tested the relationship between handling loan loss provisions and net return on assets, total margin of assets. We obtained the following findings:The earnings management motivation of China’s listed commercial banks was largely fund-raising, and Surplus smooth the earnings management basic requirement of commercial bank had not reached; there is still a large space for listed commercial banks in China use loan loss provisions to manage earnings; the loan loss reserve is still listed commercial banks in China’s surplus means; Earnings management of listed commercial banks in China is two-way, and part of listed commercial banks had the higher extent of earnings management; the relationship between loan loss provisions ratio and non-performing loan rate of increment is significantly positively correlated by measuring the extent of earnings management of listed commercial banks in China, but the relationship between the maneuverable loan loss provisions ratio and ROE showed a weak negative correlation, the relationship between Maneuverable loan loss reserve ratio and total assets profit rate showed a weak positive correlation, the latter two types of relations are not significant.