The Effect of Income Taxes on The Determination of Capital Structure in The Palestinian listed corporations

Actual income tax affect the market company's value through its effect of funding resource , funding became an urgent need for listed companies , like other public shareholding companies It has become necessary in order to continue and expand on its activities to keep on with technological developments, and funding resources are affected by many factors, the study problem represented in the impact of the determinants of financial structure and the effect of change in the income tax rate in the company in the selection of appropriate funding structure. The study aims to identify the impact of the factors determining the structure of capital financing in the listed Palestinian corporations and identify the effect of Income Tax in the selection of the corporations’ financing structure. Panel Data method is used in the sample analysis that consisted of (33)listed Palestinian corporations ;the study data were obtained from the website of the Palestine Securities Exchange for the period between the year 2002 to 2013. The result of the study showed that the financing structure of the Palestinian corporations affected by many factors , including Profitability As study result's showed the presence of statistically significant negative effect on profitability over the debt in the Palestinian companies use. The study result's also showed the presence of a positive impact of the concrete assets on the borrowing rates and a positive impact of the size of the company on the rations of borrowing . study result's also revealed the existence of a positive impact of the growth in the Palestinian corporations on borrowing rates, but did not show a statistically significant impact of the tax on the loan financing. Based on the results reached by the study , The study recommends improving the financing environment for the diversification of financing options for companies, And to improve investors' rights (ownership and religion) in the law of public shareholding companies to ensure encourage of the Palestinian investor to invest , and to encourage and develop savings and investment trend among Palestinian society members rather than Exchange Savings on phenotypic depreciation expenses , and put additional tax policies that encourage funding securities updated on the Palestinian market.