Reseach On The Influence Of The Fair Value To The Earnings Management Of Domestic Listed Commercial Banks

On February 25, 2006, Chinese Ministry of Finance issued a new “accounting standard for business enterprises”, which introduced the fair value. On January 26, 2014,the Ministry of Finance issued “the accounting standards for enterprises NO. 39—fair value measurement”. This is an important measure to promote the fair value.Fair value makes the accounting information of the domestic commercial banks more scientific and relative. But the fair value itself is imperfect, and the measurement of the fair value involves too much human estimates. This may bring some space to the manager of domestic listed commercial banks to make earnings management.This article selects 14 domestic listed commercial banks as samples, and aim to study the earnings management based on the fair value. The major task is as follows. Firstly, make a qualitative analysis, including the financial assets, debt restructuring, the investment of real estate, asset impairment, exchange of non-monetary assets, business combination based different control of the sample bank’s. The goal is to analysis of the possibility of earnings management. Secondly, make a empirical analysis, getting the maneuvering accrued profits as dependent variable, and treat investment gains, losses or gains on the changes of the fair value, asset impairment loss, non-operating income, non-business expenses, reputation as the independent variables, and ROA and LLP as the control variables, building a multivariate linear regression model for empirical analysis.Through the empirical analysis, this paper get the following conclusions: first, after the new accounting standards of 2006 coming into effect, a certain space of earnings management of domestic listed commercial banks existed. The second conclusion is that the common tools of earnings management are investment gains, asset impairment loss, non-operating income and non-business expenses. But losses or gains on the changes of the fair value and reputation failed to pass the test of significance, so they both are not strongly related to earnings management. Sheet 2, tables 26, references 80...