Corporate finance is the division of finance that deals with how corporations deal with funding sources, capital structuring, liquidities 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.
Corporate finance departments are charged with governing and overseeing their entities’ financial activities and capital investment decisions. Such decisions include whether to pursue a proposed investment and whether to pay for the investment with equity, debt, or both.