The Effect of Tax planning practices on Stock Returns

-An Empirical Study on Non-Financial Securities listed on the Muscat Stock Exchange-

Abstract

The research aimed to test the impact of tax planning practices on the returns of shares of non-financial companies listed on the Muscat Securities Market. To achieve that goal; Secondary data was collected from the annual financial reports of 21 companies, during the period extending from 2019 to 2022. The researcher used time-sectional data, It was analyzed using the E-views 12 program. The dependent variable was measured stock returns by dividing the net income after tax by the weighted average number of common shares. The independent variable (tax planning) was measured by the current effective tax rate, and the size of the company was measured by the logarithm of the total Assets, and financial leverage was measured by dividing total debt by total assets as a control variable. The results showed that there was no significant effect of tax planning practices on the return on shares of non-financial companies listed on the Muscat Securities Market before and after controlling for the variables of size and leverage, which means that these mentioned variables did not affect the return on shares of non-financial companies listed on the Muscat Securities Market. Finance.