The terms corporate finance and corporate financier are also associated with investment banking. Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of current assets and current liabilities the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).
Capital budgeting is concerned with the setting of criteria about which value-adding projects should receive investment funding, and whether to finance that investment with equity or debt capital. Ĭorrespondingly, corporate finance comprises two main sub-disciplines. The primary goal of corporate finance is to maximize or increase shareholder value. Corporate finance is the area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.
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