Earnings Management Research Of List Commercial Banks In China

During the global financial crisis in2009,commercial banks of the main economic body in the word have suffered.While Chinese listed commercial banks take strong growth in the same time..By the existing research,we found earnings management appear in many listed commercial banks. Although earnings management does not violate the relevant accounting standards, it violated the neutrality of accounting information requirements.As a result, The stakeholders of enterprises lack real earnings information to understand the situation. Ultimately it will affect the development of the capital market. For Chinese listed commercial banks are the government important monetary policy output mechanism, they are also an important part of capital market in China.16A-share listed commercial Banks accounted for more than30%of the total market value in A-share shares, thus the research about the characteristics of listed commercial bank earnings management and the specific means of earnings management is important. By normative research and case study I found that earnings management motivation of listed commercial Banks in China including industry regulation and achieving profit smooth, specific means of earnings management include:using of loan impairment and available for sale financial assets.This paper selects16listed Commercial Banks in A-share market as the research object and compare their recent annual report data. And then describes the present situation of commercial bank industry. comparing the change of the financial data of listed commercial bank, earnings management characteristics were revealed on the motive and means. Ping An Bank earnings management cases are analyzed in detail. Finally five policy suggestions are concluded.This paper consists of five parts:The first part is the introduction, including the questions and significance of research, and the research method and the research status at home and abroad. The second part is the related theory of earnings management. Including the development of the definition of earnings management and the difference among earnings management, earnings manipulation and accounting fraud,and the theoretical basis of earnings management. the motives and means of earnings management in common enterprises are reviewed.The third part is the general situation of Chinese commercial Banks and earnings management. Then concrete analysis of the development of commercial bank and assets, liabilities, surplus financial status of the industry. Summarized the characteristics of commercial bank industry earnings management by surplus ability and financial status.The fourth part is a specific earnings management case from listed commercial bank. First, a brief introduction of the case enterprise background about Ping An Bank, then analyzing the external motivation of earnings management and internal motivation of earnings management. Finally reveal its downward earnings management behavior in2008and upward earnings management in2012.The fifth part is policy recommendations. There are five specific recommendations including:the first, regulatory authority should take appropriate management of deregulation and "invisible hand" of market should be more effective; the second,to avoid extensive industry management and strengthening of rule refinement, reduce the impact of accounting professional judgment on accounting information disclosure; the third, regulatory innovation for financial assets at fair value measurement and disclosure of changes in accounting is necessary; the four, improving the corporate governance of listed commercial banks and restrict excessive earnings by management; the fifth,strengthening the penalties for violations of information disclosure and preventing accounting fraud are also necessary.