Corporate finance management is a branch of finance that refers to the management of financial resources of a company. The main objective of corporate financing is to maximize the company value by making proper allocation of financial resources, along with taking care of the financial risks. Finance management focuses on analyzing the financial problems and devising the universal solutions, which are applicable to all kind of companies.
There are various topics, which are covered under the study of corporate finance such as working capital management, inventory management, debtor’s management, dividend policy, short term and long term financing and financial risk management. Each of the above mentioned subjects make use of different financial tools in deciding the allocation and management of resources among most competing opportunities. It is one of the highly discussed topics due to its own importance in growing economy of any country.
Finance management is an absolute necessity for all types of business organizations. Earlier it used to be the part of overall finance management of a firm. But, over the last one decade, it has emerges as a separate discipline altogether. Today, in both large and medium sizes corporations, there is a dedicated department involved in taking care of the corporate finance management of the company.