Notice of RetractionResearch on Earnings Management of China´s Comercial Banks in New Accounting Standards

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

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 China´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 banks´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.