earticle

영어

Earnings management is an important strategic decision of banks, which will affect the future development direction of the bank. In this paper, author selects the data of listed banking industry in China from 2004 as the sample, and tries to find out the factors that affect the earnings management, especially the influence of the ownership structure and the competition on earnings management. Through the empirical analysis, we found that the proportion of the first largest shareholder and the degree of earnings management of the bank presents the "U" type nonlinear relationship; the proportion of the senior executives has negative impact on the earnings management. There is a positive correlation between the market share competition and earnings management in the banking industry. Overall, the rise in the absolute amount or relative amount of bank loans will increase the level of earnings management of banks. The degree of competition of state-owned banks is negatively related to earnings management, but non state-owned banks were positively correlated to earnings management.