Abstract: Forestry, an important basic industry in China, constitutes the principal part of ecological construction. Due to the particular nature of forestry, listed companies in this industry possess stronger earnings management motivations which makes this issue receive more attention. Through descriptive analysis as well as empirical studies, this paper discusses the behavior of earnings management of listed forestry companies and their preference for the means of management. The research demonstrates that there exists the phenomenon of listed forestry companies in loss managing their earnings by reducing their profits, and that such companies tend to manage earnings by extracting more allowances for asset impairment and by overstating non-operating revenues.