Can Earnings Management Reduce Systemic Risk in Commercial Banks:Evidence from Chinese Listed Banks
Earnings management is a commonly used tool for financial management in commercial banks,but its risk ef-fects are often exaggerated.Based on the data of 32 A-share listed banks in China from 2008 to 2021,this paper investi-gates the impact of earnings management on systemic risk in banks.Research has shown that earnings management by commercial banks can reduce systemic risk,and this effect is more pronounced in joint-stock banks,banks with high cap-ital quality,and banks in credit contraction periods.Mechanism testing shows that earnings management reduces systemic risk in banks mainly by enhancing their profitability and stability,reducing the size of shadow banking,and increasing bank competition.The increased economic policy uncertainty will weaken the inhibitory effect of earnings management on systemic risk in banks.
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万方数据
