Investigating the effect of cost management and optimal allocation of resources on improving financial performance in government-affiliated companies

Cost management is a company that combines debt and equity and aims to determine the composition of each company's financial resources in order to maximize the wealth of its shareholders. Given that the cost of capital of the company is considered a function of its capital structure, choosing the optimal capital structure reduces the cost of capital of the company and increases its market value. The nature of the allocation of financial resources, the existence of financial constraints, the size and compactness of capital are among the features that influence the financing decisions of companies and ultimately the financial performance of banks. Accordingly, in this study, the role of financial resource allocation processes, financial constraints, size and capital intensity on the relationship between cost management and financial performance of banks listed on the Tehran Stock Exchange is explained. This research is applied in terms of purpose, descriptive and correlational in terms of research method and data collection. Based on the results of panel data and unbalanced panel data method is used to test the hypotheses. Also, the statistical sample includes all Banks listed on the stock exchange market for a period of seven years from 2016-2017. Finally, it was found that cost management and resource allocation have an impact on improving financial performance in government-affiliated companies.