What is corporate finance?

At a large company, investment firm, or corporation, the corporate finance department is responsible for planning and coordinating the company’s investment strategies and decisions. The department conducts investment analysis to determine how the company can best improve shareholder value via short and long-term strategy. Methods used in corporate finance include investment banking, capital investments, such as purchasing real estate or equipment, and financing debt. The corporate finance department also determines how to reward company shareholders, such as by issuing quarterly or yearly dividends.