Models for active galactic nuclei and X-ray binaries where "cold" rotating
matter is illuminated by a nonthermal source above it have been widely stud
ied, and they successfully explain the main spectral features of black hole
candidates, including reflection humps above 10 keV and the iron line at 6
.4 keV. Making the reasonable assumptions that the innermost part of an acc
retion disk around a black hole is unstable and clumpy and that it is illum
inated by X-ray sources originating above it, we compute the X-ray variabil
ity induced by both a clump of matter moving relativistically around the bl
ack hole and the nonthermal source moving above the disk. One interesting n
ew result we find is that even for a face-on geometry, rotation-induced var
iability can still be observed as long as the nonthermal source is not exac
tly at the symmetry axis; this is true even if the accretion disk is smooth
. We also show that the reflected X-ray component, peaked around 10 or seve
ral tens of keV, can vary more than other spectral components, such as the
thermal emission from the disk and the external power-law flux, and that it
carries richer information on the nonthermal sources. This is because the
reflected component experiences a double path through the gravitational fie
ld of the central mass, i.e., from the source to the disk and then from the
disk to the observer. Thus our study is most relevant to X-ray variability
of black hole candidates where relativistic effects are strong. These resu
lts may provide a partial explanation of why some Seyfert 1 galaxies exhibi
t rapid X-ray variability with timescales comparable to the fastest orbital
periods, and why soft X-rays and UV emission generally show slower variabi
lity than do the hard X-rays.