Corporate finance is the part of a company that deals with the acquisition of goods, services, and funds by a business, or the control and management of their cash.
Corporate finance is a bit of a misnomer. It isn’t just about finance or corporations as much as it is about supporting managers, who are the real decision-makers.
What is corporate finance?
Corporate finance is the field of business that deals with the financial functions of a company.
This includes capital markets and investments, financial management, and planning. Corporate finance jobs are crucial to help companies grow and to keep them profitable.
Corporate finance professionals
Corporate Finance professionals are often called upon to provide advice on financial aspects of business decisions which can include mergers and acquisitions, capital raising, and divestitures.
The corporate finance career path
These here lie in the middle of management and financial services, but the skills needed to succeed are not always easy to find in one person.
In a way, this job combines both analytical thinkings with interpersonal skills needed for negotiating with people at all levels within organizations.
Corporate Finance Courses
The undergraduate studies in Corporate Finance are mainly about the skills needed to perform both basic and more advanced tasks related to this field.
Goals of corporate finance
The goal of corporate finance is to increase shareholder value–this means making decisions that will benefit the company financially.
– It provides a complete understanding of how corporations are Financed in a global economy
– It provides an understanding of key concepts related to corporate finance
– It develops an in-depth knowledge of how important financial decisions are made by corporations and their managers
Roles of corporate finance
The role of corporate finance is to advise on important issues such as mergers and acquisitions or divestitures.
It also helps firms in making investment decisions about their internal resources or raising capital from outside financiers.
Corporate finance concepts include discounted cash flow analysis, capital budgeting, and duration risk.
Books on corporate finance
This section will discuss five (5) books on corporate finance that you should read if you want to gain an understanding of this topic:
Here are a few books on corporate finance that would help you If you intend to take this carrier path
- Financial Management.
- The Essentials of Finance & Accounting.
- Corporate Finance.
- The New Capitalist Manifesto
- Repositioning Financial Services
Corporate finance is primarily the management of a company’s financial resources to serve the company’s needs.
Ultimately, all corporate finance jobs are aimed at achieving two goals: maximizing Shareholders wealth and achieving organizational objectives.
The roles that one might take as a corporate finance professional, include: financial analyst, investment banker, treasury specialist, or capital market analyst; this list is not exhaustive.
This Article discusses some of the concepts in corporate financial management that are relevant for all those who work in this field, including working capital management, portfolio management, and risk management.
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