Estimating　both　static　and　dynamic　models,　this　paper　confirm　earnings　management　effect　and　its　associated　effect　with　macroeconomic　cycle　on　Loan　Loss　Provision　hypotheses　for　US　commercial　banks.　Moreover,　the　effects　seem　to　be　influenced　by　different　loan　loss　provisions　level.　According　the　result,　it　suggests　that　the　financial　surveillance　may　need　to　be　strengthened　during　recessionary　phases,　when　banks　are　more　likely　to　become　fragile　and　have　to　manipulate　earnings.　©2009　IEEE.