This study investigated the impact of CEO Shareholding on discretionary accrual of listed firms on the floor of the Nigerian Stock Exchange. The study used the ex-post facto research design. This informed the reliance on secondary data obtained from the published annual reports and accounts of a sample of eighty-six (86) non-finance companies and the sample size was determined via the Taro Yamane Formula. The study employed judgmental sampling technique based on certain criteria. The study employed CEO Shareholding (independent variables) while discretionary accruals via the Modified Jones Model. (Dependent variable) Both descriptive and inferential statistics were employed in the analysis of data. The major findings derived from this study CEO Shareholding insignificantly affect discretionary accrual. The study recommends that share-based option of executive compensation given to top business executives be encouraged as this has the tendency of increasing organizational productivity, efficiency and help reduce dysfunctional behavior among chief executive officers since their investments are also as stake, hence there will be goal congruence and the resultant effect reducing dysfunctional behavior. In addition, this study contributes to knowledge by providing empirical evidence that CEO Shareholding are not prime instigator of discretionary accrual in non –financial sector of Nigeria listed companies and the developed model can be used by researchers in both developed and developing countries.