We examine whether firms simultaneously use accrual-based earnings management (AEM) or real earnings management (REM) to engage in earnings management. Our findings, using five measures of REM, such as cash flows from operations, R&D expenditures, SG&A expenses, production cost, and gains on assets sales, based upon a 1991-2010 dataset on related within listed companies in Taiwan, firstly, we show that while firms use R&D expenditures of real earnings management to increase their earnings, there existing substitution effect between accrual-based earnings management and real earnings management. Secondary, we also find when firms through use real earnings management including cash flows from operations, production cost, gains on assets sales to increase their earnings, that existing a complementary effect between accrual-based earnings management and real earnings management. Our evidence provide a reference for investors, that when investors judge a company not only by accrual-based earnings management, but also by real earnings management to manipulate their earnings.