It is well documented in the literature that firms tend to manipulate earnings before IPO (initial public offerings) and SEO (seasoned equity offerings). This study contributes to the literature by providing the first evidence on whether and how fiscal support in the form of preferential tax treatment and financial subsidy affects a firm’s earnings management behaviors. Using data from Chinese firms that conduct IPO and SEO, I find that firms have a lower level of earnings management prior to the offerings if they enjoy more income tax savings attributed to preferential tax treatments or enjoy more financial subsidies from local governments. My results are consistent with the view that firms that receive stronger fiscal support have smaller demand for earnings management which is a costly tool for a firm to achieve its desired earnings targets.\ud