Abstract

Income smoothing theory, firms that have Continued profitability and profitability shocks governs the process is less, usually more valuable than other firms in their market. Smoothing of the attraction for investors in the short term is and companies have more variability in cash flows, profits have been unstable, so the more the ultimate benefit of the smoothing benefit and the Management will also benefit from the output process. With this importance, the paper reviews the relationship between cash flow volatility and earnings smoothing board is rewarded. Subject to review, data from 109 companies listed in Tehran Stock Exchange in a 5-year period (1385 till 1389) has been analyzed. Research hypotheses using multiple regression model, least squares method was examined. Based on finding, the relation between arbitrary accrued items (as index for income management) with paid directors in companies with high cash fluctuations have been more than another similar companies. I was also proved that the paid to board directors for income smoothing