Study On Chinese Listed Commercial Banks Loan Loss Provision And Earnings Management、Capital Management

The loan loss preparation system has been established since1988,and under the joint efforts of regulators,loss reserve system get continuous development and improvement.In order to further improve the system of loan loss preparation, making the loan loss reserve system keep step with international regulatory system on the premise of adapting to China’s basic national conditions, regulators put forward series of new regulatory requirements.The proposed and improvement of these regulatory requirements not only making banks realize fully and accurately withdraw loan loss is important to bank assets’ liquidity and security, pre-tax deduction and general preparation for the banks’ capital also encourage banks to withdraw loan losses provision timely and fully, all these are of great significance to the healthy development of financial.In the first and second part,this paper mainly studies the domestic and foreign scholars’ research on the loan loss preparation, earnings management,capital management and list out the writing ideas of this article as well as innovation points.The third part includes three parts:system development of loan loss preparation,loan loss preparation and earnings management theory analysis,loan loss preparation and capital management theory analysis.In this paper, the fourth part is empirical research, this article selected14domestic commercial bank semi-annual financial data,data period range from2006to2012, choose the non-performing loans, loan growth, bank scale, the next actual loan loss rate as control variables, the capital adequacy ratio and return on assets before tax and prepare as independent variables, loan loss preparation rate as the dependent variable, then build a model to explore whether commercial bank use loan loss preparation to carry out surplus management and capital management.Finally, according to the result of empirical study,the article puts forward several suggestions to perfect our loan loss reserve system system.The main contributions can be included as followings: At present,domestic loan loss preparation research mainly focuses on the development of loan loss reserve system、existing problems and suggestions or other theoretical researches, empirical research is few.This paper is based on the empirical research method to research loan loss provision motivation.At present, the loan loss provision has many problems, this paper analyze the influence factors of loan losses provision in turn and the different between commercial bank loan loss preparation practice and regulatory requirements, combined with empirical research results.But due to the limited access to financial data, this article has not done further empirical research about non-state-owned commercial Banks’earnings management, which is explained in theory.