What is Corporate Finance?
Corporate finance is defined as the entire gamut of financial strategies governing an organization’s long-term and short-term assets to ensure a gradual increase in company value. Capital structuring, investment decisions and strategies, and accounting together inform the core financial strategies of a company. While increased revenues is an important criterion, the prime objective of financial planning is to maximize shareholder value by implementing different innovative strategies.
Experts in corporate finance work with financial tools and software systems to analyze the priority of financial resources, balance out risks, and move forward with investments only after stringent financial analysis. There are three subsections of corporate finance - capital budget, capital structure, and capital management.
Why is Corporate Finance Important?
All company decisions have a cumulative effect on its finances. Corporate financial decisions are those that involve economic transactions, comparisons of planned investments, and estimation of potential cash flows from different capital sources. Optimal financial solutions are central to regulating the debt and equity of businesses, making corporate finance managers the pivotal players of the modern business world. They also decide on actions related to excess earnings of companies - whether to retain the surplus capital for other investments or convert it into dividends and distribute them to shareholders. Corporate financial managers analyze investment risks by studying the ongoing market trends and ensuring firm plans of action that bring sustainable profits.
Can I Learn About Corporate Finance Online?
A JP Morgan report identified the maintenance of steady company profits as the greatest challenge for corporate finance managers in 2022, as inflation touched a record high of seven per cent in the previous year. As digital evolution accelerates the transformation of industries, corporate finance managers will take the lead in evaluating the best investment opportunities. Online courses on corporate finance teach you to quantify financial uncertainty in your economic decisions. Starting from the basics of investment returns to valuing stocks and bonds, the courses touch on all aspects of corporate finance. Here are the most important areas to cover for this subject:
- Managerial Economics
- Econometrics
- Corporate Communications
- Financial Strategy
- Risk Management
- Macroeconomic Analysis
- Investment Theory
What Kind of Career Can I Get with a Background in Corporate Finance?
According to the Bureau of Labor Statistics, financial analysts will witness a nine per cent rise in demand between 2021 and 2031. This points towards not just high-paying jobs, but also challenges for corporate finance managers to find innovative methods of financial planning and analysis. Studying corporate finance will open the doors to the following job profiles and portfolios:
- Corporate Development and Strategy
- Finance Planning and Analysis
- Investor Relations
- Treasury
- Risk Management
- Controllership
- Chief Financial Officer
- Sales and Marketing Manager
Why Take an Online Course at Emeritus?
Each Emeritus online course is designed keeping key learning outcomes in mind by a team of experts. We use the backward design methodology to develop instruction for learners of all ages. This enables us to craft unique, interactive, learning experiences that include a combination of assessments, hands-on activities, skill applications, and more.
Emeritus also collaborates with the best universities and faculty around the world to curate the course curriculum that can effectively tackle present challenges in the industry, while preparing you for the trends and risks in the future. Our courses consist of assignments, exams, capstone projects, networking opportunities, a fine balance of practical and theoretical concepts, and the opportunity to learn from top minds in the industry. This adds to the holistic experience we try to provide for each learner.
We are also focused on providing courses that are standardized in quality. This is done by adhering to standards set by a global organization called Quality Matters which is focused on providing quality standards for online and innovative digital teaching and learning environments. The rigorous criteria ensure all our learners invest in quality education that is easily accessible and affordable.
