Empirical Study On Earnings Management Of Chinese Listed Banks

Earnings management is to maximize their own interests, the management conceal or distorted the real operating data to deceive stakeholders to make decisions. Up to now, there is a lot of research works about corporate earnings management, but the research results in allusion to listed commercial banks is very rare, relevant studies to identify the model of earnings management of listed commercial banks is even less. Commercial banks has been occupied the most important position of China’s national economy.Normalized earnings management behavior is neither conducive to the standardization of China’s securities market nor to the sustainable healthy development of banking industry. The right decisions of corporate executives can be effectively suppressed earnings management to avoid possible negative consequences of profit manipulation. So, it will bring a fatal impact on the whole economy if commercial banks emerging questions. The presence of earnings management will buried the seeds of dangerous for the operating of commercial banks. Therefore, the research of earnings management on listed commercial banks becomes very important and very necessary.The separation of owners and operators is the character of listed commercial banks, which makes the asymmetric information between owners and operators, which created a living space for earnings management and put forward higher requirements on the regulations of the earnings management. However, until now, there is no recognition models of earnings management of China’s listed commercial banks that are raised academically. The author attempts to put forward practical recognition model of earnings management through its in-depth study of China’s listed commercial banks.The research focus of this study are:Firstly, study of earnings quality indicators of China’s listed commercial banks; Secondly, using Shanghai and Shenzhen A-share market commercial banking experience data from2009to2012for samples to verify land bridge earnings management model for China’s listed commercial banks inapplicability, and then using factor analysis method to analyze representative factors; Thirdly, using regression analysis to derive new models of earnings management of listed commercial banks; Forthly, cases cited by the new model is applied to the actual; Lastly, in this paper, in the end the conclusion is made and puts forward the regulation of listed commercial banks.