This research purposely looks into earnings management and how it relates to firm performance. By attempt of gaining empirical results, we proxy firm performance by return on assets (ROA)and return on equity (ROE) as dependent variables. We respectively model discretionary accruals and abnormal cash flow from operations as independent variables supported by firm size, leverage, and liquidity as control variables. Panel analysis was adopted to test a sample of 14 non-financial listed on the Ghana Stock Exchange from 2008 to 2019. We find that firms use both accrual earnings and real earnings methods to manage earnings. Results further indicate firms employ the efficient concept of earnings management to facilitate positive firm performance. Our analysis shows that companies with future acquisition prospects can use earnings management to boost financial efficiency. Although we find evidence of a positive relationship between EM and firm performance, we encourage authorities and facilitators to implement rules requiring transparent financial information to mitigate misleading results and reduce managers discretion. Prospective investors must also perform an in depth review of financial records prior to investing. Finally, our research has added to the body of expertise on earnings management, which positively impacts firm performance.