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This paper investigates the relationship between fair value accounting and the behavior adjustment of commercial banks which is aimed at catering to the regulatory requirements by using a dataset from Chinese listed commercial banks from 2007-2011.The empirical results show that (1) The preferences of the adoption of fair value accounting in China’s commercial banks do have a significant impact on their capital adequacy ratio. (2) The lower the core capital commercial banks have, the more the banks’ managers are inclined to own trading financial assets. (3) When commercial banks anticipate the current capital adequacy ratio at a lower level, the managers will tend to own more trading financial assets. This research justify the modification of the “Rules for Regulating the Capital Adequacy Requirement of Commercial Banks”.

Good corporate reputations are critical because of their potential for value creation, but also because their intangible character makes replication by competing firms considerably more difficult. This paper tests the relationship between the reputation and the earnings quality. Though I find no evidence to support that companies with good reputation share superior earnings relative to the corresponding industry levels, I do find the evidence that the reputation is not only positively correlated with superior earnings quality, but also does have positive effect on superior earnings quality, as well as the superior total sales do in Chinese public companies.