Cash as a major source of business unit plays a central role in many financial decisions. But failing to maintain an optimum cash flow will result in agency conflict and opportunity cost for the company. In this regard, managers who manipulate profits decrease the reliability of the company by reducing the quality of the firm's profits, which leads to an increase in the cost of financing the company. In this case the company with more cash holdings can cover the problems of external financing. Therefore, companies with higher earnings management will keep more cash, and if managers are able to increase their profits by reducing their earnings manipulation, they will increase their cash holding. On the other hand, managers who smooth out their profits, because their lower volatility, lower their risk for outsiders, thereby increasing people's willingness to provide resources to the company, thus keeping less cash in the company and when managers Have the ability to raise cash holding. But in the absence of appropriate scientific and empirical evidence, the present study investigates the role of management ability on the relationship between earnings management and the level of cash holdings of the firm. In this regard, a sample of 130 companies listed in the Stock Exchange during the period 2013-2018 was selected and tested. The results using multivariate regression showed that there is no significant relationship between earnings management (accrual index manipulation) and cash holding and management ability but there is no relationship between earnings management (earnings smoothing index) and cash holding. Confirmed. The results also showed that management ability reduces the relationship between earnings management (accrual manipulation index) and cash holding level.