Research On The Influence Of Top Management Characteristics Of Chinese Listed Commercial Banks On Earnings Management

Earnings management is the use of accounting standards and accounting policy choices made by corporate management.Through the adjustment and control of financial information in order to achieve the company or its own interests to maximize the behavior.Under the modern corporate governance structure,the separation of management rights and ownership gave rise to the principal-agent relationship.According to the rational "economic man" hypothesis,acting as the agent's management authority,controlling the process of financial information generation,will naturally be based on incentives for compensation and promotion.The motives and pressures for being dismissed manipulate surpluses and realize their own interests.Therefore,it is particularly urgent to study the relationship between the characteristics of senior executives and earnings management.Recalling previous research,domestic researchers have focused on the study of executive demographic characteristics and corporate performance,corporate value,and financial restatement behavior.There is little research on the relationship between executive demographic characteristics and psychological characteristics and earnings management.Moreover,due to the peculiarities of the financial industry,especially the commercial banks that are the lifeblood of the national economy,they often face the fate of being eliminated in the research process.However,with the huge impact of Internet finance and interest rate liberalization on commercial banks and the strengthening of international and domestic regulatory efforts,commercial banks have the motivation and pressure for earnings management.There is no doubt how the characteristics of senior management of commercial banks affect earnings management and how it will affect the urgent need to study.In this paper,the research object is located in a listed commercial bank.Based on the specific situation of China in the new era,based on the principlesof high-level echelon,agency theory,and human capital theory,the characteristics of senior management are divided into demographic characteristics and psychological characteristics,and all A-shares are selected for listing.The bank's 10-year data for 2007-2016 is a sample,and studies the impact of different characteristics on the earnings management behavior of listed banks.In the process of empirical analysis,on the basis of the modified Jones model,combined with the particularities of the banking industry,a model suitable for China's banking industry and capable of properly reflecting the level of earnings management is constructed.Taking the senior management's age,education,gender and senior management's risk appetite and sense of responsibility as the explanatory variables,the bank size,the proportion of the largest shareholder,the marketization process,operating performance,and the change of senior executives are control variables,and multiple regressions are conducted.Analyze and empirically test the impact of executive characteristics on earnings management.The results of the study indicate that:(1)The proportion and number of female senior executives are significantly negatively related to earnings management,that is,female executives are able to curb the earnings management behavior of commercial banks,and further consider that women are independent of the role of directors and find that female directors can significantly suppress(2)There is a significant negative correlation between executive education and earnings management levels,indicating that executives with higher education qualifications can suppress the earnings management behavior of commercial banks;(3)There is a negative correlation between executive age and earnings management.However,this correlation does not pass the significance test;(4)Executive risk appetite and earnings management are significantly positively correlated at the level of 1%,indicating that executives are more radical and more likely to perform earnings management;(5)Senior management The sense of responsibility is significantly negatively related to the earnings management of commercial banks,reflecting that executives' performance of social responsibilities can,to a certain extent,inhibit the behavior of commercial banks in earnings management.Based on this,this article proposes the following suggestions: Appropriately increase the numberand proportion of female senior executives,optimize the management's gender structure,and pay particular attention to the role of female directors in improving the quality of bank earnings;in the selection of high In management,the qualifications of senior executives should be considered as one of the important criteria for selecting talents;Attention must be given to the age composition in senior management teams,and the average age should be given special emphasis and must not be singled out;Suppression of over-risk preferences of senior executives in terms of behavior and behavior;Require high-management responsibilities to be fulfilled through policies,laws and regulations,and assessment incentive mechanisms.For example,it is necessary to publicly disclose social responsibility reports and improve executives' performance of social responsibilities awareness.