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Through the analysis of BTD and DA, we proved that executive of restructuring companies with interest coverage ratio below 1 time for three consecutive years had strong incentives to make upward earnings management to avoid receiving status of insolvent company and also had strong incentives to make downward earnings management in order to participate in workout program in which existing debts of debenture holders including corporate bond, commercial paper (CP) could be written off by new funds sourced from banks. As conclusion, as interest coverage ratio of restructuring companies approached to 1, earnings management activity through discretionary accruals appeared to decrease, however, as interest coverage ratio of top 33 companies based on sales volume approached to 1, earnings management activity through BTD appeared to increase.