Several studies have been conducted to investigate capital structure (CS), which is measured by leverage, and its impact on firm value. CS decisions are determined by various factors, such as growth opportunities, firm size, and profitability. Earnings management (EM) and stock liquidity (SL) are further determinants of CS. As a result, the objectives of this study are: (1) to measure the impact of EM on SL; (2) to examine the impact of SL on CS; (3) to investigate the direct impact of EM on CS; and (4) to test the mediating impact of SL on the association between EM and CS. The sample contains 94 non-financial firms with 564 firm-year observations listed on the Egyptian stock exchange (EXG 100) for the period from 2015 to 2021. The findings revealed that: First, there is a significant negative association between EM and SL. Second, there is a significant negative association between SL and CS. Third, there is a significant negative direct relationship between EM and CS. Finally, there is a significant positive indirect association between EM and CS through SL. Thus, SL acts as a mediator in the association between EM and CS.