Research on Earnings Management of China's Comercial Banks in New Accounting Standards

摘要

In 2006 FY, Treasury Department of China issued the New Accounting Standards in line with the international standards. Research on the content and characteristics of earnings management tools of commercial banks under the New Accounting Standards has practical significance, that can improve the quality of accounting information and supervision on Chinaȁ9;s Commercial Banks. This paper chosen all the listed commercial banks of Shanghai and Shenzhen Stock Exchanges as samples, adopted the data in financial statements from 2005 to 2007, made empirical analysis on the impact of New Accounting Standards on banksȁ9;earnings management behavior and verified the earnings management tools. The results indicated earnings management had been restrained under the new standards in the mass; the derivative financial instruments moved into the balance sheet restrain earnings management to some extent. Although there is new regulation about the provisions of loan loss, there is still room for earnings management; the scope of earnings management on investment had been narrowed to available-for-sale financial assets. Based on empirical results, this paper gave some proposals on controlling earnings management of commercial banks under the new standards.