Research On Identification Intention, Identification Technology And Economic Consequences Of Earning Management In Credit Transactions

As the main financing channel of Chinese market,effective risk prevention of Banks is the key to the stable operation of the whole financial market.Accounting information of enterprises reflects the operation and financial status of enterprises to a large extent and is an important basis for credit personnel to evaluate the solvency of enterprises and control risks.The quality of enterprise accounting information is the guarantee that it plays an effective role in credit transactions,especially earnings quality,because it affects the bank's prediction of the future cash flow of enterprises.In fact,China's listed enterprises are widespread in different degrees of earnings management phenomenon.In order to control risks and provide the efficiency of resource allocation,it is necessary for credit personnel to identify the earnings management behaviors of enterprises.However,some cases disclosed in the credit market reflect that there are still large regulatory loopholes in China's banking industry.Then,whether Banks should use accounting information and identify the earnings quality of enterprises to prevent credit risks when making credit decisions?This paper focuses on the problem of "Banks' recognition of corporate earnings management",On the basis of previous studies on bank identification of enterprise earnings management,behavioral economics is introduced to separate the identification behavior of Banks into identification intention and identification technology,and study how these two types of factors affect the identification behavior of credit personnel,as well as further studied the economic consequences of the differences in intention and technology.It is of great significance to study bank identification intention and identification technology,as well as differences in economic consequences of different behaviors,to deeply understand the behavioral patterns of bank credit decisions,effectively prevent credit risks and optimize resource allocation.This paper takes Shanghai and Shenzhen a-share listed companies from 2001 to 2017 as samples,and the analysis path is from recognition intention to identification technology and final reflect identification behavior.Firstly,the identification intention is studied by using the non-standard audit opinion control identification technology with obvious earnings management.On the basis of the existence of identification intention,the identification technology of Banks is studied with the complexity of earnings management methods.Then the economic consequences of the differences in intention and technology are further studied.The research results show that :(1)the bank has the intention to identify the earnings management of enterprises as a whole,but does not have the intention to identify the state-owned enterprises and have the intention to identify the non-state-owned enterprises after distinguishing the property rights.(2)The bank has the technology to identify the enterprise simple earnings management means,but the complex earnings management behavior,the credit personnel lacks the recognition technology.(3)Compared with earnings management of enterprises that have no intention to identify,the rate of credit default that has intention to identify decreases to a higher degree.In the case of recognition intention,the recognition technology can effectively reduce the credit default rate,and the credit default rate without recognition technology significantly increases.