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This study explores the impact of Loan Loss provision on earning management and capital Management. Earning Management and capital management are used as dependent variables while loan loss provision is used as independent variable. Furthermore control variables are also used in this study which are; natural log of total assets, non-performing loan and total loan. Research utilized panel data and for analysis descriptive statistics, correlation matrix, random and fixed effect models are employed. Twenty commercial banks listed on Pakistan Stock Exchange are used as sample for this study. Period of the study ranges from 2010 to 2017. Furthermore the investigation used secondary data which is collected from annul reports of banks, Pakistan stock exchange web site and state bank of Pakistan Financial statement analysis. Hausman test result directs that fixed effect regression model is favorable model for this examination. Fixed effect regression model result states that independent variable LLP and control variables NPL and TL have positive impact, while LnTA has negative influence on earning management. Furthermore dependent variable capital management is negatively influenced by independent variable LLP, and control variable NPL, whereas LnTA and TL have positive influence on capital management.

Keywords: Earning Management, Capital Management, Loan Loss Provision, Non- Performing Loan, Commercial Bank.