Mohamed S. A. Hamada (2020) "Deferred Tax and its Impact on Financial Performance in Light of the Tax Policies of Companies Listed on Palestine Exchange" , Administrative And Financial Sciences .
This study aims to measure the impact of deferred tax on the financial performance in terms of return on assets (ROA), return on equity (ROE), and equity multiplier in the light of , in light of the tax policies of corporations listed on Palestine Exchange (PEX) for the period of 7 years from 2013 to 2019. The study mainly applies EViews software for analysis purposes to alongside other appropriate statistical tools that are relevant in conducting the study. The population of this study consists of the financial statements of 16 corporations representing (34%) of the corporations listed on Palestine Exchange (PEX), which included (48) corporations in total. In order to accomplish the study`s objectives, the researcher adopts the descriptive analytical method to review the data that is related to the theoretical framework, in addition to analyzing the disclosed annual financial reports of the targeted corporates listed in Palestine Exchange. The study displays to a number of findings, the most significant findings can be summed as there is no leverage of Deferred tax assets and liabilities on return on assets in which corporates tend to clear their income tax via deal. There is also a reverse effect of deferred tax liabilities return on equity in which corporates prefer to finance its enterprises through some allocations and liabilities. Taken together the study recommends the need of Palestine Exchange to encourage its public shareholding companies to enclose the deferred tax in its financial reports according to the International Accounting Standard No. 12 )AIS12(.