What Is Corporate Finance? Definition and Overview

Corporate finance is a broad financial area that involves all of the financial elements of corporate governance.

This includes raising capital to start or grow a corporation.

It also involves managing the financial well-being of a corporation and improving the value of the company, which in turn improves shareholder wealth.

Corporate finance may also refer to the specific people or departments inside a company responsible for these types of activities.

Ultimately, the goal of any corporation is to make money, which can make the corporate finance department among the most important players in the operation of any organization.

Corporate Finance Managers

Another aspect of corporate finance involves reviewing the current finances of the company to determine the company’s financial strengths and weaknesses.

Based on this review, the corporate finance managers recommend actionable advice for management.

What is Corporate Finance

Image Source: What is Corporate Finance?

A corporation’s corporate finance manager collaborates closely with the firm’s senior management and provides financial information in a way that is relatable and understandable to allow a manager to effectively guide the future of the company.

Ultimately, the overall goal of corporate finance is to increase the profits and overall valuation of the company.

Whether a company is privately or publicly owned, the ultimate goal is to create value for the shareholders. 

AdvisoryHQ (AHQ) Disclaimer:

Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.