A Study Of Chinese Listed Commercial Banks,earnings Management

Earnings management is the use of accounting standards for corporate managers to construct transactions to modify the financial statements,ultimately mislead the relevant market participants to make the accurate judgment about the company's performance.Earnings management behavior,in the short term,can achieve some kind of objectives of the manager,but in the long run will bring negative effect towards the company and some stakeholders,and influence the accuracy of the company's financial states.Commercial banks,as companies,also have the incentive to manage earnings,Commercial banks,as companies,also have the incentive to manage earnings,and because of the specialty of commercial banks' business and their importance in the financial system,the negative impact of earnings management is amplified and affects the financial stability.In this paper,we use the commercial banks as samples to study the earnings management behavior,according to the research of general industry companies' earnings management in the literature,combined with the specialty of commercial banking business,we make appropriate modification of revised Jones model's several measurement indicators.We use 23 listed commercial banks' annual report from 2011 to 2015 and find out that there are earnings management behaviors in listed commercial banks in China,and finds that the earnings management of large state-owned commercial banks is significantly higher than that of small and medium-sized commercial banks.In the study of the economic impact of commercial banks,we find that earnings management behavior of listed commercial banks has a significant negative correlation with business performance,earnings management behavior does have a negative impact to commercial banks.And then give some suggestion on how to reduce the level of earnings management of commercial banks.