What is Corporate Finance: Certification, Courses, Career, Salary, Admission & Fees
Jaya SharmaAssistant Manager - Content
Corporate Finance deals with how businesses or corporations manage their money. It helps in making financial decisions to achieve their financial goals and maximize shareholder value. It is a sub-division of finance that deals with corporate funding, capital structuring, and financial decision-making.
- What is Corporate Finance?
- 1.1 Elements of Corporate Finance
- 1.2 What is the Need for Corporate Finance?
- Skills Required to Learn Corporate Finance
- Scope of Corporate Finance in Career
- Why Choose a Career in Corporate Finance?
- Career Opportunity After Learning Corporate Finance
What is Corporate Finance?
Corporate finance maximizes the overall worth of a company and increases stakeholders’ value. This is achieved through short-term and long-term capital planning. It is important to make capital investments since poor budgeting can compromise the financial position of a company by increasing financing costs or any inadequate operating capacity.
Elements of Corporate Finance
The following are the elements of corporate finance:
- Financial Planning and Analysis (FP&A): This function involves creating financial plans, budgets, and forecasts to guide a company's financial activities. Financial analysts use historical data and market trends to project future financial performance and provide insights for decision-making.
- Capital Budgeting: It is a process through which investment projects are selected in a way that they yield the highest return on investment for the company. It involves assessing the profitability, risks, and strategic alignment of potential projects.
- Capital Structure Management: Corporate finance professionals determine the amalgamation of equity and debt financing to fund the company's operations and growth initiatives. They aim to minimize the cost of capital while maintaining a balance between risk and return.
- Dividend Policy: Corporate finance plays a role in shaping a company's dividend policy. Decisions about whether to distribute profits to its shareholders as dividends or retain earnings for reinvestment in the business are made with the goal of maximizing shareholder value.
- Risk Management: Identifying, assessing, and mitigating financial risks are fundamental aspects of corporate finance. This includes managing interest rate risk, currency risk, market risk, credit risk, and other financial exposures.
- Mergers and Acquisitions (M&A): Corporate finance professionals are involved in the evaluation and execution of mergers, acquisitions, and divestitures. They assess potential targets, perform due diligence, negotiate deals, and secure financing for transactions.
- Investor Relations: For publicly traded companies, corporate finance professionals manage investor relations. They communicate with shareholders, analysts, and potential investors to provide financial information, host investor meetings, and address investor inquiries.
- Valuation: Valuation is the process of determining the value of assets or businesses. Corporate finance experts use various valuation methods, such as discounted cash flow analysis or market comparables, to assess the worth of assets or entities for pricing, investment, and financial transactions.
- Financial Strategy: Corporate finance helps develop and implement the company's financial strategy. This involves setting financial goals, defining key performance indicators (KPIs), and aligning financial objectives with the overall corporate strategy.
- Cost Management: Managing costs is essential for profitability. Corporate finance professionals work to identify cost-saving opportunities and implement strategies to control and reduce expenses while maintaining the quality of products or services. They also identify cost-saving opportunities.
What is the Need for Corporate Finance?
Corporate finance helps companies in managing their financial resources and making strategic financial decisions. The aim is to achieve the organization's overall goals and objectives. Corporate finance is required for the following reasons:
- Capital Investment: One of the primary functions of corporate finance is to assess and decide on investments in projects, assets, and ventures. This includes evaluating the profitability and risk of potential investments and allocating capital to projects that align with the company's strategic direction.
- Capital Structure Optimization: Corporate finance helps determine the right mix of financing sources (equity, debt, and hybrid instruments) to fund the company's operations and growth initiatives. Finding the optimal capital structure minimizes the cost of capital and maximizes shareholder value.
- Working Capital Management: Effective management of working capital is essential to ensure the company has enough liquidity to cover day-to-day operational expenses, meet short-term obligations, and take advantage of growth opportunities.
- Financial Reporting and Compliance: Ensuring accurate financial reporting and compliance with accounting standards and regulations is a key responsibility of corporate finance. Transparent financial reporting builds trust with stakeholders and avoids legal and financial issues.
- Corporate Governance: Corporate finance professionals help establish and maintain corporate governance practices that ensure transparency, ethical conduct, and accountability within the organization. This is particularly important for publicly traded companies.
- Strategic Financial Planning: Corporate finance contributes to the development of the company's long-term financial strategy. This includes setting financial goals, defining key performance indicators (KPIs), and aligning financial objectives with the overall corporate strategy.
Skills Required to Learn Corporate Finance
Those who are interested in succeeding in the field of corporate finance must acquire the following skills:
Skill |
Description |
Tools and Techniques |
Financial Analysis |
Analyzing financial data and statements |
|
Quantitative Skills |
Proficiency in mathematics and statistics |
|
Excel Proficiency |
Using Excel for financial modeling and analysis |
|
Building models to forecast and analyze finances |
|
|
Understanding accounting principles and practices |
|
|
Risk Management |
Identifying and managing financial risks |
|
Presentation Skills |
Delivering clear and persuasive financial presentations |
|
Knowledge of Financial Software |
Familiarity with financial software tools |
|
Scope of Corporate Finance in Career
The scope of corporate finance involves a wide range of responsibilities. These are related to managing a company's financial resources and making strategic financial decisions.
Aspect |
Role |
Responsibility |
Financial Planning and Analysis (FP&A) |
Create and manage financial plans, budgets, and forecasts |
Use financial data and market trends to develop budgets, project future financial outcomes, and provide insights for decision-making. |
Capital Budgeting |
Evaluate and select investment projects |
Assess the feasibility, profitability, and risks of potential projects, considering factors like expected cash flows, payback periods, and ROI. |
Capital Structure Management |
Determine the financing mix |
Decide how to fund operations and investments by balancing equity, debt, and retained earnings to minimize the cost of capital and manage financial risk. |
Working Capital Management |
Oversee short-term liquidity |
Manage cash flow, accounts receivable, accounts payable, and inventory to ensure enough working capital for immediate financial needs. |
Dividend Policy |
Shape the company's dividend policy |
Make strategic decisions about distributing profits as dividends or retaining earnings for future growth and investment opportunities. |
Risk Management |
Identify and mitigate financial risks |
Manage risks such as interest rate risk, currency exchange rate risk, market risk, credit risk, and other financial exposures using hedging strategies and risk assessment tools. |
Mergers and Acquisitions (M&A) |
Evaluate and execute M&A transactions |
Assess potential targets, conduct due diligence, negotiate deals, and secure financing for mergers, acquisitions, or divestitures. |
Financial Reporting and Compliance |
Ensure accurate financial reporting and compliance |
Prepare financial statements, audit financial data, and ensure compliance with accounting standards, regulatory requirements, and financial reporting obligations. |
Corporate Governance |
Establish and maintain governance practices |
Define the roles and responsibilities of management, the board of directors, and shareholders to promote ethical conduct, transparency, and accountability. |
Investor Relations |
Manage communication with investors |
Provide financial information, organize investor meetings, and address inquiries from shareholders, analysts, and potential investors to build trust and confidence. |
Valuation |
Determine the value of assets or businesses |
Use various valuation methods, such as discounted cash flow analysis or market comparables, to assess the worth of assets or entities for pricing, investment, and financial transactions. |
Financial Strategy |
Shape and implement the company's financial strategy |
Set financial goals, establish key performance indicators (KPIs), and align financial objectives with the corporate strategy to achieve financial targets and support the organization's mission. |
Cost Management |
Manage and control costs |
Identify cost-saving opportunities, implement cost-reduction strategies, and monitor expenses to optimize profitability while maintaining operational efficiency. |
Why Choose a Career in Corporate Finance?
Corporate finance is one of the most top-rated career options for the finance professionals. Below are some of the leading benefits to pick corporate finance as a career:
- You get an opportunity to understand core business operations.
- Your opinion matters in the company’s vital decisions like capital raising, mergers & acquisition, change of ownership, capital planning and investment, etc.
- It brings multiple career opportunities.
- Since it involves finance-related issues, you gain expertise in various components related to finance, investment, and core business deliverables
- You get a chance to stay updated with latest market trends, movements and understand the competitors better.
Career Opportunity After Learning Corporate Finance
After learning corporate finance, one can plan a career as one of the following designations:
Career Opportunity |
Description |
Financial Analyst |
Assess the financial health of companies and provide investment recommendations. Analyze financial data and prepare reports. |
Investment Banker |
These are the investment banking professionals who are involved in capital raising, mergers, acquisitions, and provide financial advisory services. Play a key role in financial transactions and deal-making. |
Corporate Treasurer |
Manage a company's financial resources, including cash, investments, and risk management. Ensure efficient cash flow and liquidity. |
Risk Manager |
Identify and mitigate financial risks within an organization, including market fluctuations, credit risks, and operational issues. |
Financial Planner/Advisor |
Help individuals and businesses create financial plans, set goals, and manage investments. Provide advice on retirement and wealth management. |
Portfolio Manager |
Oversee investment portfolios for individuals or institutions, making investment decisions to achieve financial objectives while managing risk. |
Corporate Finance Manager/Director |
Manage a company's financial activities, including budgeting, financial planning, and strategic decision-making. |
Private Equity Analyst/Associate |
Work with investment firms to identify, evaluate, and manage investments in private companies, often focusing on buyouts and non-publicly traded firms. |
Provide funding to startups and emerging companies in exchange for equity ownership. Foster innovation and entrepreneurship. |
|
Financial Consultant |
Provide specialized financial advice to businesses or individuals, focusing on areas like taxation, mergers and acquisitions, or financial restructuring. |
Credit Analyst |
Assess the creditworthiness of individuals or businesses seeking loans, analyzing financial statements, credit reports, and economic data for lending decisions. |
Treasury Analyst |
Assist with cash management, cash flow forecasting, and financial risk management for organizations, ensuring financial stability and liquidity. |
Financial Controller |
Oversee an organization's accounting and financial reporting functions, maintaining accurate financial records and ensuring compliance with accounting standards. |
Financial Educator |
Teach financial literacy and money management to individuals and groups in educational institutions, nonprofits, or private organizations. |
Compliance Officer |
Ensure a company's compliance with regulatory requirements and industry standards, mitigating legal and financial risks associated with non-compliance. |
Popular Corporate Finance Colleges in India
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Popular Corporate Finance Specializations
Popular Specializations
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News & Updates
Jan 21, 2025
Student Forum
Answered 8 hours ago
MBA in Finance and Business Analytics at the Center for Management Studies is offered via CMS Business School. This course encourages students to develop a deep understanding of financial analytics across a gamut of topics. The names of the subjects offered in the first semester of the course are:
- B
R
Contributor-Level 7
Answered 2 days ago
The duration of Queen's University Belfast MSc in Finance course is 1 year. Also, note that, according to Times and Sunday Times Good University Guide 2024, QUB is ranked third in the UK for Graduate Prospects in Finance. Graduate of this course have secured roles in the companies like Deloitte, PwC
N
Contributor-Level 6
Answered 2 days ago
Insurance has numerous benefits for the policy holder. Some of the major benefits of insurance include the following:
- Financial Security During Medical Emergencies: Although an individual may have enough savings, medical treatments for his/her family may go beyond the available financial assets. Medi
R
Beginner-Level 5
Answered 2 days ago
To get into Jindal School of Banking and Finance for a MSc course, candidates must meet the eligibility criteria set by the college. Students must pass graduation with a minimum of 50% aggregate. Jindal School of Banking and Finance offers full-time MSc courses of one year duration. Apart from the
L
Contributor-Level 7
Answered 2 days ago
Candidates looking for course admission at Jindal School of Banking and Finance must have a valid entrance exam scores.The institute considers various entrance exam scores such as SAT India/ATMA/MAT/CMAT/CAT etc. for admission to the BCom and MSc courses, respectively.The institute offers UG, PG, Do
N
Contributor-Level 7
Answered 2 days ago
Masters of Science (popularly known as MSc) is a postgraduate academic degree through which the students are given an in-depth knowledge of a particular field of study in the domain of Science and Technology associated fields. Students can also check the list of reasons below to pursue MSc course fr
R
Contributor-Level 7
Answered 2 days ago
BCom full form is Bachelor of Commerce. The BCom course is a 3-year UG degree that teaches students the basics of Commerce, Finance, and Business. Students can check the list of career options available after completing BCom from Jindal School of Banking and Finance:
Job Profiles | Average Salary | |
---|---|---|
Accountants | Accountants meticulously navigate financial landscapes, decoding numbers to unveil insights and ensure fiscal integrity. | INR 2 LPA |
Account Executives | Account executives make dynamic relationships, bridging the gap between client's needs and the offerings of their companies through persuasive communication and strategic problem-solving. | INR 2.5 LPA |
Business Executives | Business executives orchestrate the harmonious symphony of strategy, innovation, and leadership to propel their organizations forward amidst the ever-evolving currents of the corporate world. | INR 3 LPA |
V
Contributor-Level 8
Answered 2 days ago
The college offers four BCom courses specialisations at the UG level. Students can check the list of course specialisations from the points mentioned below:
BCom. (Hons.)
BCom. (Hons.) Finance & Entrepreneurship
BCom (Hons.) Capital Markets
The course eligibility criteria are class 12 or equi
Answered 2 days ago
Important Documents Required at the time of Admission at Jindal School of Banking and Finance:
- Scanned Class 10, Class 12 and graduation marksheet
- Leaving Certificate
- Exam Scorecard
- Aadhaar Card
- Passport-size photograph
- Signature
Note: The list of documents mentioned above are the general documents. For mo
S
Contributor-Level 7
Answered 2 days ago
Yes, applications are open at Jindal School of Banking and Finance for various courses. The mode of application is online. Candidates who meet the course-specific eligibility criteria have to visit the JSBF official website of OP Jindal official website to register their candidature. Candidates can
N
Contributor-Level 8
Answered 2 days ago
The university offers BCom (Hons.), BCom (Hons.) Finance & Entrepreneurship, BCom (Hons.) Capital Markets, Global BCom and MSc Finance courses at the UG and PG level. The college also offers doctorate-level courses besides the UG and PG courses. The mode of application is online. Candidates can fil
S
Contributor-Level 7
Answered 4 days ago
Here are some top colleges in the UK and Germany for International Finance and International Business:
United Kingdom:
1. University of Oxford: Offers a Master of Financial Economics program.
2. University of Cambridge: Provides various MSc programs in Finance.
3. London School of Economics and Politic
A
Contributor-Level 8
Answered 6 days ago
Choosing between CMS Business School, Jain University (CMS Jian) and ICFAI Business School (ICFAI Bangalore) for an MBA in Finance or a BA programme depends on your priorities and preferences.
CMS Business School, Jain University:
- Rankings: CMS Business School is ranked 21st by The Times of India an
A
Contributor-Level 8
Answered a week ago
Here are some colleges in Karnataka that offer BBA in Finance, but are not in Bangalore:
Sindhi college: Top BBA college in Karnataka.
The oxford college of Business and Management: Best college of BBA in Karnataka
P
Beginner-Level 1
Answered a week ago
More than country it is b school brand that is relevant.
In terms of exposure and job market UK and US MBA are equally placed but UK MBA has more acceptability in European countries.
Both are equally good so you can give preference to brnad value and cost.
Answered a week ago
The table below includes the list of top 10 UK universities to study MBA in Finance:
University | QS World University Ranking 2024 (Accounting & Finance) | |
---|---|---|
4 | ||
6 | ||
7 | ||
13 | ||
20 | ||
22 | ||
37 | ||
45 | ||
46 | ||
67 |
S
Beginner-Level 5
Answered a week ago
UK is the home to over 100 top Universities for MBA in Finance courses. They all offer quality education with better job opportunities to students. Completing the MBA degree from popular UK Universities is valid worldwide. Mentioned below are the top universities for an MBA in Finance in the UK:
MBA Universities in UK | QS Global MBA Rankings 2025 |
---|---|
5 | |
7 | |
18 | |
19 | |
30 | |
47 | |
58 | |
68 | |
72 | |
101-110 |
L
Beginner-Level 5
Answered a week ago
Yes, health insurance is a necessary requirement for all the international students who want to study in Germany to cover the essential health expenses. Additionally, this is also an essential requirement for the visa application.
However, healthcare without insurance is expensive. Most of the studen
j
Contributor-Level 9
Answered a week ago
As per the latest report, the the highest and average package offered to PGDM students during Imperial School of Banking and Management Studies placements in 2024 stood at INR 16.4 LPA and INR 9.5 LPA, respectively. The same is tabulated below:
Particulars | PGDM Placement Statistics (2024) |
---|---|
the highest package | INR 16.4 LPA |
Average package | INR 9.5 LPA |
Answered a week ago
Imperial School of Banking and Management Studies offers excellent placement assistance to its students. The school provides placement statistics, with the highest package standing at INR 16.4 LPA. The average package for Imperial placements is INR 9.5 LPA. The institution also offers both Summer an
Answered a week ago
Yes, Imperial School of Banking and Management Studies offers excellent placement assistance to its students. Imperial School of Banking and Management Studies, Greater Noida recorded an average package of INR 9.5 LPA for its PGDM batch in the academic year 2023-2024. The the highest package offered
Answered a week ago
Imperial School of Banking and Management Studies, Greater Noida recorded an average package of INR 9.5 LPA for its PGDM students of the batch 2024. The highest package offered to PGDM students during Imperial School of Banking and Management Studies placements in 2024 stood at INR 16.4 LPA. The top
Answered a week ago
Yes, Imperial School of Banking and Management Studies conducts placement drives annually for its PGDM courses. The key highlights of Imperial School of Banking and Management Studies placements for the PGDM Class of 2024 are tabulated below:
Particulars | PGDM Placement Statistics (2024) |
---|---|
the highest package | INR 16.4 LPA |
Average package | INR 9.5 LPA |
Top recruiters | Wipro, Blackstone, ANZ Bank, HCL Tech |
Answered a week ago
Yes, Imperial School of Banking and Management Studies, Greater Noida recorded an average package of INR 9.5 LPA for its PGDM students 2024. The key highlights of Imperial School of Banking and Management Studies placements for the PGDM Class of 2024 are tabulated below:
Particulars | PGDM Placement Statistics (2024) |
---|---|
the highest package | INR 16.4 LPA |
Average package | INR 9.5 LPA |
Top recruiters | Wipro, Blackstone, ANZ Bank, HCL Tech |
Answered a week ago
Imperial School of Banking and Management Studies Pune offers excellent placement assistance to its PGDM students. The institution also offers both Summer and Winter Internships, providing students with valuable industry exposure. The the highest and average package offered to PGDM students during I
Answered a week ago
SCTIMST Trivandrum curriculum for PG Diploma in Blood Banking Technology includes various subjects. Each subject includes theoretical and practical components. A list of these subjects is given below:
- Blood Physiology and Donore Management
- Blood Components
- Immunohematology
- Regulatory Affairs
- Total Quali
H
Contributor-Level 10
Answered a week ago
Yes, you need to have the knowledge of mathematics to learn finance. Finance is a field where a lot of quantitative applications are required and thus from analyzing and assessing investment performance to planning financial activities math skills are important. Professionals who wish to start a car
J
Contributor-Level 9
Answered a week ago
For those who are considering a career in finance, some of the most popular finance certifications and courses Chartered Financial Analyst (CFA) certification, Certified Public Accountant (CPA) certification, Chartered Alternative Investment Analyst (CAIA) designation, Certified Financial Planner (C
J
Contributor-Level 9
Answered a week ago
Yes, UMass Boston is a STEM-designated course. This means that international students who graduate from the course can extend their 12-month Optional Practical Training (OPT) period by an additional 24-months, allowing them to work in the U.S. for up to 3 years after getting their degree. Also, note
N
Contributor-Level 6
Answered a week ago
The latest cutoff information for the BBA (Hons.) in Finance at Pandit Deendayal Energy University (PDEU) varies each year based on the number of applicants and their scores. For the upcoming academic year 2025, the cutoff for the General Category is expected to be around GUJCET Rank 712.
Admission
A
Contributor-Level 8
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What subjects are offered in the first semester of MBA in Finance and Business Analytics at Center for Management Studies?