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Allah forbade fraud and manipulation of financial transactions in verse 29 Al-Nisa-a Surah. This verse provides at least two dimensions related to the theme of this paper. Firstly, it is considered as an evidence to band managers in practicing earnings management (EM). Secondly, this verse considered as a command to minimize the conflict between stockholders themselves which in turn improve the performance of the business and decrease EM level as well. Hence, this paper seeks to provide a conceptual framework investigating the role of political instability on the relationship between ownership corporate governance mechanisms (CG) and EM in the Palestinian non-financial listed companies. Indeed, the political environment significantly influences the effectiveness of CG. Based on political theory, the political instability can influence the practices of EM and impair the effectiveness of CG mechanisms. CG mechanisms (board of directors characteristics, audit committee characteristics and ownership structure) plays a crucial role in constraining EM practices. In addition, agency theory and political theory were used to develop the hypotheses. Accordingly, it can be observed that the effectiveness of the CG may negatively affected by political instability particularly in Palestine. Unlike most of the previous literatures on the developing countries, this paper uses the political instability as a moderating variable to conceptualize the relationship between CG mechanisms and EM practice.