Overconfident managers tend to overestimate future returns from their firms’ investment. Thus, this study predicts that overconfident managers will tend to delay loss recognition and use less conservative accounting. Based on a sample of Taiwanese listed companies in the electronics industry from 2005 to 2014, this study investigates the relationship between managerial overconfidence and earnings quality. This study classifies managers as overconfident using a dichotomous variable where OverCon is set equal to 1 if managers increase their ownership in the firm by 10% during the fiscal year. This study uses accruals and discretionary accruals as proxies to measure earnings conservatism. The empirical results show that managerial overconfidence is significantly and negatively associated with negative accruals, indicating that overconfident managers use less conservative accounting. This study further finds that managerial overconfidence is positively associated with positive discretionary accruals, suggesting that overconfident managers tend to manage their earnings upward. Thus, this study suggests a negative association between managerial overconfidence and earning equality.