Effect of Tax Planning on Firms Market Performance: Evidence from Listed Firms in Ghana

Seyram Kawor, Holy Kwabla Kportorgbi


The study sought to ascertain the level of tax planning of firms and to explore the relationship between tax planning and firms’ market performance. The study used 22 non-financial companies listed on the Ghana Stock Exchange over a twelve year period from 2000. The longitudinal correlative designed was used. The results indicate that that firms’ tendency to engage in intensive tax planning activities reduces when tax authorities maintain low corporate income tax rates. Secondly, tax planning has a neutral influence on firms’ performance. This finding challenges the general perception that every cedi of tax savings from tax planning reflect in the pocket of investors. It is concluded that investors must institute systems to ensure tax planning benefits reflect significantly in their pockets.

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DOI: http://dx.doi.org/10.5539/ijef.v6n3p162

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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