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Using a landmark securities reform that increased secured-creditor rights in India, I test whether the associated increase in creditor monitoring impacted earnings manipulation in Indian firms. I hypothesize that firms with more collateralizable (tangible) assets would experience greater levels of monitoring post-reform and thereby reduce earnings management. Using a differences-in-differences design, I find that firms with more tangible assets reduced real and accruals-based earnings manipulation post-reform. In further testing, I find that such firms make more conservative accounting choices post-reform. This study suggests that creditor monitoring can significantly impact financial reporting and earnings management decisions.