The construction of one or more plants in optimum sites and in the best possible situation, not\nonly improves materials circulation and customer services, but also puts the company in a\ndesirable situation. Decisions associated with the selection and acquisition of features of a\ncenter�s site selection can have a great impact on the ability to gain and maintain competitive\nadvantages. This study tests the impact of distance from population centers on the\nprofitability for the first time. The sample which has been used in the food products industry,\nincludes 21 firms listed in Tehran Stock Exchange during 2009 to 2014, and panel data\nregression methods were used to process and test the hypotheses. The results showed that\nproduct market competition enhances the negative impact of corporate distance from Tehran\nand big cities on the basic earnings power (earnings before tax). However, the relative power\nof the firm in a competitive environment weakens the negative impact of corporate distance\nfrom Tehran and big cities on the basic earnings power (earnings before tax).
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