This paper examines both real and accrual-based earnings management activities around seasoned equity offerings (SEOs). While previous studies have focused on accrual-based earnings management, this paper is the first to investigate real earnings management activities around SEOs and how they interact with accrual-based methods. The study finds that firms use both real and accrual-based earnings management tools around SEOs. It also shows that after the Sarbanes-Oxley Act (SOX), firms have shifted from accrual-based to real earnings management due to increased costs associated with accrual-based methods. The paper also shows that firms' choices between real and accrual-based earnings management vary cross-sectionally, depending on their ability to use accrual-based methods and the costs involved. The study uses a two-stage model to analyze these choices, controlling for self-selection into earnings management. The results show that firms with higher net operating assets (NOA) are more likely to use real earnings management, while firms with higher scrutiny are more likely to use real earnings management. The study also finds that firms that meet or beat earnings benchmarks are more likely to use real earnings management. Overall, the study provides new insights into how firms manage earnings around SEOs and how they respond to regulatory changes like SOX.This paper examines both real and accrual-based earnings management activities around seasoned equity offerings (SEOs). While previous studies have focused on accrual-based earnings management, this paper is the first to investigate real earnings management activities around SEOs and how they interact with accrual-based methods. The study finds that firms use both real and accrual-based earnings management tools around SEOs. It also shows that after the Sarbanes-Oxley Act (SOX), firms have shifted from accrual-based to real earnings management due to increased costs associated with accrual-based methods. The paper also shows that firms' choices between real and accrual-based earnings management vary cross-sectionally, depending on their ability to use accrual-based methods and the costs involved. The study uses a two-stage model to analyze these choices, controlling for self-selection into earnings management. The results show that firms with higher net operating assets (NOA) are more likely to use real earnings management, while firms with higher scrutiny are more likely to use real earnings management. The study also finds that firms that meet or beat earnings benchmarks are more likely to use real earnings management. Overall, the study provides new insights into how firms manage earnings around SEOs and how they respond to regulatory changes like SOX.