Abstract: Using listed companies’ data in 2009-2012, this paper discusses the impact of reduction phenomena of executives share on earnings management. The results show that the occurrence of reduction increased the probability of positive earnings management; the larger the reduction of executives share, the stronger the degree of positive earnings management; the company which has the duality of chairman and CEO has stronger positive earnings management. The conclusions above helps to understand the impact of reduction of executives share on earnings management, and it has a certain meaning for regulating the reduction behavior of executives share and protecting the interests of investors.