The construction of one or more plants in optimum sites and in the best possible situation, not only improves materials circulation and customer services, but also puts the company in a desirable situation. Decisions associated with the selection and acquisition of features of a center's site selection can have a great impact on the ability to gain and maintain competitive advantages. This study tests the impact of distance from population centers on the profitability for the first time. The sample which has been used in the food products industry, includes 21 firms listed in Tehran Stock Exchange during 2009 to 2014, and panel data regression methods were used to process and test the hypotheses. The results showed that product market competition enhances the negative impact of corporate distance from Tehran and big cities on the basic earnings power (earnings before tax). However, the relative power of the firm in a competitive environment weakens the negative impact of corporate distance from Tehran and big cities on the basic earnings power (earnings before tax).
Financial statements play an important role in the world of accounting. They aim at providing information about financial position, performance, and changes in financial position of a company. Since the reliability of financial statements (including earnings and its components) depends on the audit quality to a large extent, understanding how market considers audit quality when valuating earnings and its components is of great importance. Thus, this study investigates the impact of auditor industry specialization, as a criterion for audit quality, on market valuation of earnings and earnings components. The sample of the study includes 155 firms listed in Tehran Stock Exchange over the 2006 to 2013 period, and the panel data regression method is used to process and test the hypothesis. The results indicate that market valuates earnings and its components (including total accruals, discretionary accruals, and operating cash flow) positively. Meanwhile, the moderating role of auditor industry specialization and audit firm's size was not verified in this valuation.
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