The article compares how companies in different countries manage their earnings to protect investors. It looks at two types of earnings management: using accounting tricks (accrual-based) and manipulating real business activities. The study finds that in countries with strong investor protection laws, companies tend to use real earnings management more than accounting tricks. This suggests that stricter rules make it harder for companies to manipulate their financial reports. The study also shows that when analysts closely follow a company, it limits their ability to manipulate earnings through real activities.