A complex and great challenge cutting across almost all types of economies from developed to developing economies is the phenomena of shadow economies. A number of factors are responsible for peoples' involvement in such practices of shadow economies around the world. One of such factor is government policies especially those concerning taxation and regulation. Shadow economy practices such as tax evasion, results in the loss of tax revenues for the government and consequently affect government performance. The implications of loses in tax revenue is the incapacitation of the government's ability to finance projects essential for economic growth and societal welfare. The current study revealed two major variables that can possibly influence the shadow economy level. The variables are: firstly, the probability of detection and secondly, the penalty rate. The present study therefore builds on the existing body of knowledge on taxes from a deterrence perspective. Since shadow economy is subject to individuals, this suggests that deterrence factors should be given priority, compared to other factors. The proposed framework, from a deterrence perspective, would benefit tax administrators in comprehending and mitigating the phenomenon of a shadow economy.

The study deal with the subject of the profitability and liquidity of companies listed on the Palestine Stock Exchange in light of the crisis of the COVID-19 pandemic, as the study aimed to verify whether or not there is an impact of the pandemic on the profitability and liquidity of the companies under study by addressing the main problem about knowing the extent to which the various sectors listed in the market are affected by the pandemic. The descriptive approach was adopted for the theoretical aspect, while for the practical side, the earnings per share were adopted as an indicator of liquidity and profitability and were extracted from the financial statements of companies that have been published on the website of the Palestine Stock Exchange. The study was able to include (25) companies from different sectors for which data was available; after collecting and analyzing data and testing the two hypotheses of the study, the study reached a number of conclusions, the most important of which is that there is no statistically significant effect of the COVID-19 pandemic on the liquidity and profitability of companies listed on the Palestine Stock Exchange, and a set of proposals were presented, including Investors in financial markets should not generalize the reaction and indices of developed markets to emerging markets. The study also recommended the need to rely on other financial indicators other than profitability and liquidity to evaluate financial performance. It is also possible to study the impact of the Corona epidemic crisis on the financial and non-financial performance of organizations in general.