Corporate finance is the division of finance that deals with how corporations deal with funding sources, capital structuring, and investment decisions. Corporate finance is primarily concerned with maximizing shareholder value through long and short-term financial planning and the implementation of various strategies. Corporate finance activities range from capital investment decisions to investment banking.
Things done mostly in corporate finance:
- Corporate finance is often associated with a firm’s decision to undertake capital investments and other investment-related decisions.
- Corporate finance manages short-term financial decisions that affect operations.
- In addition to capital investments, corporate finance deals with sourcing capital.