An Empirical Research Of Earnings Management Of Listed Commercial Bank In China

Earnings management is a finance, economics, accounting with cross concept. The earnings management refers to the management of the company in the range of accounting standards and legal allowed by choosing to maximize their utility or company market accounting method to maximize the value so as to smooth profits, reduce risk, reduce the loss of purpose behavior. With the development of China’s banking industry, the earnings management of commercial banks have gradually surfaced. For example, our country the development of deep silver2009annual report disclosure shows its first quarter of loan loss provision ratio is only-10.5%, there is a big difference with other listed commercial banks, some scholars pointed out that this may be due to earnings management of the bank’s management result. Earnings management will not only damage the long-term interests of the company, but also damage the interests of investors, which is disadvantageous to the healthy development of the national economy. Therefore, in this paper, the earnings management of Chinese listed commercial banks as the research object, on the earnings management of listed commercial banks in our country are analyzed, and provide a theoretical basis to reduce the earnings management behavior of commercial banks.To estimate the extent of earnings management of listed commercial banks in our country are the data of listed commercial banks of our country14using the2007-2013based abnormal loans based on the current researches of loss provision model, analysis of China’s listed commercial banks the existence of earnings management behavior and the differences of earnings management of commercial banks of different nature existence; secondly based on the extent of earnings management measures of commercial banks from the angle of corporate governance, analyzes the factors influencing the extent of earnings management, the main conclusions are as follows:first, there was a negative correlation between the number of independent directors and earnings management, which is the number of independent directors more degree of earnings management in Chinese commercial banks the smaller, this also reflects the external supervision of independent directors in China; second, the proportion of state-owned shares and the Commercial Bank of our country the extent of earnings management is positively relationship, the extent of earnings management is the state-owned shares in the joint-stock commercial banks of our country in the greater proportion of commercial banks is higher, this and in recent years the Commercial Bank of our country Chinese have also shares and the proportion of commercial bank earnings management degree of reduced compliance; third, business A U relation between bank ownership concentration and the degree of earnings management, namely, that is when the ownership concentration is less than a certain value, earnings management with ownership concentration increases, and when the ownership concentration is larger than this value, the extent of earnings management with ownership concentration rise and increase. Finally, according to the influencing factors of earnings management in commercial banks and its consequences, the earnings management behavior of commercial banks policy recommendations...