Definition of ''Corporate Finance''
1) The financial activities that are related to running a corporation.
2) A division or department that oversees the financial activities of a company. Corporate finance is basically concerned with maximizing shareholder value through long-term and short-term financial planning and the implementation of several strategies. Everything from capital investment decisions to investment banking falls under the domain of corporate finance.
Investopedia Says
Investopedia describes ''Corporate Finance''
Among the financial activities that a corporate finance department is included with are capital investment decisions. Should a planned investment be made? How should the company pay for it; along with equity or with debt, or with the combination of both? Should shareholders be offered dividends on their investment in the company? These are just some of the questions a corporate financial officer attempts to answer on a consistent basis. Short-term issues involve the management of current assets and investments, current liabilities, inventory control, and other short-term financial issues. Long-term issues involves new capital purchases and investments.