Correlation Study On The Fair Value Measurement And Earnings Management Of China's Commercial Banks

Since the ministry of finance promulgated the accounting standards for business enterprises in 2006, the fair value measurement has been introduced to China's accounting measurement about 10 yeas.The fair value measurement can provide more relevant and useful accounting information for the accounting information users,so as to avoid making the wrong decisions because of unrealized gains or losses refer to historical cost measurement.However,because the determination of fair value exists strong subjectivity and poor operation that provided the space of earnings management to the enterprise management. So far, because it is hard to obtain profits and losses data of the fair value measurement continuously and effectively,domestic scholars'study on the relationship between fair value and earnings management most still stay in theoretical.Most of them focused on the analysis of the fair value measurement under the phenomenon of earnings management behavior, less to study the relationship between fair value measurement and earnings management. So, empirical research on the correlation between the fair value measurement and earnings management can enrich the theory on research of correlation study and it has a certain academic value.In addition,because it does not have a relatively perfect fair value measurement operation guide in China,and enterprises and stakeholders are very concerned about the accounting earnings,the enterprises are likely to be based on the the improper use of fair value to make earnings management.Therefore, this article studies will be conducive to objectively understand the earnings management under the fair value measurement and the relationship between them that has a certain practical significance to promote fair value in the correct application of our country,to perfect the enterprise accounting standards and to control earnings management.The fair value measurement has been pioneered and widely used in the measurement of financial assets. Therefore the key areas of the fair value's use is the financial sector, and banking is larger and more standard management in the financial sector.In order to optimize the allocation of economic resources and promote the healthy development of the capital market, the research on Commercial Bank of fair value measurement and earnings management has a more extensive theoretical and practical significance.This topic takes the date of 16 listed commercial Banks in China from 2008 to 2014 as the research object and make an empirical study on the correlation between fair value measurement and earnings management.First of all, this topic makes descriptive statistical analysis for the sample Banks from the earnings management of financial instruments fair value measurement,exchange of non-monetary assets,debt restructuring,the investment real estate and impairment of assets,and it is concluded that the fair value of listed commercial Banks in China provide more earnings management space;Secondly,this topic uses the overall accrued profits method and the extended Jones model to measure the degree of earnings management of commercial Banks,and get the discretionary accruals that on behalf of the extent of earnings management;Then, this topic builds the linear regression equation on the relevant profits and losses of the fair value measurement with earnings management to make correlation tests,it is concluded that changes in fair value gains and discretionary accruals have no linear correlation,but asset impairment loss, investment income, and non-operating income all have linear correlation with discretionary accruals,namely the fair value measurement and the earnings management of domestic commercial banks have a significant linear positive correlation;Finally, according to the conclusion,to put forward policy suggestions to effectively curb the behavior of earnings management of commercial banks under the fair value measurement.