Thus earnings management practice is one of the most attentive issue from corporate’stakeholders concern. Earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers (Healy and Wahlen, 1999), and this action will decrease the financial statement’s quality (Kinney et al., 2004). Earnings quality is the inverse of earnings management. Firms with good earnings quality will therefore have low earnings management and vice versa (Yip et al., 2011). Managers take advantage of GAAP flexibility to manage reported earnings in their financial report (Gargouri et al., 2010).