The aim of this study is to investigate the effect of institutional ownership on accounting earnings management and how to limit its impact on the level of managerial ownership in the company accepted the Tehran Stock Exchange. For this purpose two hypotheses are developed and data on the 120 companies in Tehran Stock Exchange for the period between 1384 to 1390 were analyzed. This regression model using panel data with fixed effects approach, reviews and tests. The results show that firms with a higher level of institutional ownership, less increase profit from the accruals because with increasing levels of institutional ownership, aggressive management reporting will be limited. Also, the survey levels of managerial ownership showed increasing of Percenet of shares available to managers decreases amount of accounting earnings management. Because, managers do not want their ownership interests jeopardized. Also, The results showed that with increasing managerial ownership, limiting the impact of institutional ownership on earnings management is reduced.
