Corporate Finance Definition: Corporate Finance is that division of a company which is concerned with the financial operation of the company. In most businesses, corporate finance focuses on raising money for various projects or ventures. For investment banks and similar corporations, corporate finance focuses on the analysis of corporate acquisitions and other decisions.
Corporate finance is related to the corporations and the financial decisions that are taken by the corporations. There are several important concepts of corporate finance and several other financial tools that are behind all these corporate decisions. All these important concepts of corporate finance are used to minimize the financial risks to which the corporate sector is exposed. At the same time, these corporate finance concepts are used to increase the profitability of the corporations. These important concepts of corporate finance can be used to identify, analyze and solve the financial problems of almost every firm.
The principal objective of corporate finance is the maximization of corporate value and at the same time, decreasing or diminishing the financial risk factors of the company. Rationally, corporate finance is not similar to managerial finance that analyzes the financial decisions of every company instead of corporations solely. However, the principal ideas in the field of corporate finance are capable of being applied for resolving adverse financial circumstances of every type of company.