Given that financial statements provide relevant and valuable information for external user groups, increasing emphasize on accounting numbers and especially earnings, create strong incentives for managers to opportunistically manipulate earnings. Earnings management doesn’t necessarily reflect firm’s actual performance and may represent incorrect information about firm. The incorrect information leads to inappropriate judgment by shareholders and investors about firm performance. Therefore, the existence of an effective corporate governance mechanism is critical to protect investor’s right in acquiring right and fair information about firm. In this paper, at first earnings management, its types, incentives is discussed and then solutions for preventing earnings management, meaning corporate governance and its mechanisms, represented.