Abstract: Using the 2012-2014 year listed firm samples of National Equities Exchange and Quotations, this paper investigate the impact of the NEEQ expansion and market-maker system on the listed firms' accrual earnings management and real earnings management behavior, in order to reveal the effect of the NEEQ institutional development on the earnings quality of the company. This study found that: with the NEEQ development, listed firms significantly reduce their accrual earnings management and real earnings management. However, under the rapid expansion, the introduction of market-maker exacerbates accrual earnings management and real earnings management in a certain extent, and the cost-controlled real earnings management level is significantly higher when stock liquidity increase.