argue that firms with higher volatility in cash flow
typically have higher volatility in net income. This second measure attempts to control this
factor. If companies use accruals to manage results, the variability of changes in net income
The Impact of the International Accounting Convergence on Income Smoothing in Brazilian Companies
15
BBR, Vitória, v. 12, n. 2, Art. 1, p. 1 - 24, mar.-abr. 2015 www.bbronline.com.br
may be less than the variability of changes in operating cash flow