This research aims to discover the effect of the ownership structure (Managerial Ownership, Institutional Ownership, and Foreign Ownership) on earnings management, and to test the impact of financial leverage on this relationship. To achieve the objectives of the study, the study was applied to all service companies listed on the Amman Stock Exchange for the period between 2018–2022. While the results show an absence of a statistically significant effect of managerial ownership and foreign ownership, an adverse effect of institutional ownership on abnormal accruals is documented. After the inclusion of leverage ratio as a moderating variable, its interaction with both institutional and foreign ownership substantiates their negative effect on abnormal accruals, indicating increased monitoring as debt increases. Accordingly, the study recommended to increase the activation of the role of the supervisory bodies to monitor the performance of companies, to identify companies that earnings management for the purpose of mitigating opportunistic management and ensuring the level of rights of shareholders and related parties.