Family enterprises have been a major part of capital markets. By possessing most of their stock or being a member of the board, family members are considered the main decision makers in family businesses. Earnings on the other hand have always been a performance indicator which is under management control, most often managed or manipulated.This research seeks to identify and compare earnings management between family and non-family structured firms. After definingcriteria regarding family and non-family firms, 31 samples were selected as family based and they were grouped in relevant industries according to Tehran Stock Exchange categorization. Afterwards we randomly selected non-family firms from those industries with the same proportion. To test the research hypothesis, Jones adjusted model (Dechow et al, 1995) and multivariable regression model were used. The results indicate a meaningful relation between earnings management and ownership structure of firms where in average, non-family firms engagein earnings management more often than family ones.
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