Impact of Internal and External Auditing on the Dividend Distribution Policy of Non-Financial Firms

Topic

Impact of Internal and External Auditing on the Dividend Distribution Policy of Non-Financial Firms

Instructions

Discuss the Impact of Internal and External Auditing on the Dividend Distribution Policy of Non-Financial Firms.

Answer preview

In developing stock exchange markets, the issue of dividends forms one of the major subjects of argument. Dividend distribution in the developing market is usually affected by both internal as well as external factors surrounding the enterprise. Internal conditions in an enterprise encompass factors related to the policies and taxes whereas the external conditions relate to factors such as market conditions as well as the manner in which the stakeholders view the firm (Black, 1976). The wide variation which exists in the conditions are the reason as to why the policies used in determining dividends in a given firm are referred to as “dividend puzzle.”

Word count: 4919