Corporate finance is a popular field among business school graduates. A very dynamic sector, it offers daily challenges and attractive remunerations. Definition, masters and training, differences with market finance, salaries, professions… Here’s everything you need to know about corporate finance!
Investments, financial risk management, analytics… The corporate finance professions are full of challenges for young graduates eager for challenging careers. Thanks to corporate finance, you are at the heart of the organizations financial reactor and owe it to yourself to control everything from sources of funding to the creditworthiness of the company!
What is Corporate Finance?
Corporate finance is the set of techniques and methods used by companies to manage their financing, cash flow and balance sheet. This includes managing the company’s money, investments and expenses, as well as financial analysis and decision making. Corporate finance aims to help businesses achieve their short- and long-term financial goals by effectively managing their financial resources.
What are the different types of financing?
The types of finance present in the economic world are very different. However, some corporate finance practices attract graduates more than others. Here are some main areas in which you can pursue a master’s degree in finance:
- Market finance: is the finance that intervenes on the financial markets to buy and sell financial assets, such as shares, bonds or derivatives.
- Corporate finance: concerns companies and aims to help them manage their financing and budget.
- Project Finance: Aims to finance specific projects, such as building a factory or purchasing equipment.
- Personal finance: it is a finance that concerns people and aims to help them manage their assets and budget.
- Public finance: concerns governments and has the purpose of financing public spending and managing public debt.
- International Finance: This is finance that focuses on financial transactions between countries and can include international investment financing and trade management.
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The difference between corporate finance and market finance
Corporate finance is about organizations and aims to help them manage the company’s financing, its capital, its liquidity and its balance sheet. It includes the management of the company’s money, investments and expenses, as well as financial analysis and decision making.
Market finance, on the other hand, involves the buying and selling of financial assets in the financial markets, such as stocks, bonds, and derivatives. It aims to provide investment opportunities for investors and to facilitate financing for businesses and governments.
Why corporate finance?
As mentioned above, corporate finance is an industry full of opportunities and challenges. This universe has many advantages. It is also a key area in business which can offer many challenging and rewarding career activities, including leadership positions such as CFO or CFO.
The other benefit of corporate finance lies in the compensation offered. This is the field of finance that offers the best salaries, especially if you are a graduate of a top business school. These jobs also allow you to develop many skills both in good management of a company and in analyzing the financial state of an organization. Sometimes you will have interlocutors such as banks or investors and shareholders who need information on the company’s profitability.
Working in corporate finance also means playing an important role in corporate strategy. As a corporate finance professional, you will have the opportunity to contribute to strategic decisions of the organization by providing financial analysis and advising executives on the best options for the business.
Financial transactions are commonplace and corporate finance is full of challenging challenges. Corporate finance is an ever-evolving field and can offer many stimulating challenges for those who enjoy taking on new challenges.
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Masters in Corporate Finance
To work in this field of activity, it is important to have at least a bac+5 diploma. Masters degrees in corporate finance are plentiful. In fact, there are several avenues of access available. However, only a few schools open the door to the best professions and organisations. These include top-ranked business schools, but also some rare universities, such as the University of Paris-Dauphine.
Here is a non-exhaustive list of master finance majors you can choose to work in this branch:
- Masters in Corporate Finance. This type of master’s degree focuses on the financial aspects of business and may include courses such as accounting, corporate finance, cash management, and financial operations.
- Masters in Financial Management. This education focuses on corporate finance management and may include courses such as cash management, financial planning, debt management, and finance operations.
- Masters in Business Management. This master’s type covers a wide range of business-related topics, including corporate finance. Courses may include cash management, accounting, debt management and financial planning.
- Masters in Business Administration (MBA). An MBA is a degree that covers a broad range of business-related topics, including corporate finance. Courses may include cash management, accounting, debt management and financial planning.
It is important to note that these masters are just a few examples, and other masters programs may also be relevant for those who wish to work in corporate finance. We recommend that you do extensive research on the different programs available to find the one that best suits your interests and career goals.
Read also: The master’s degree program: definition, management, finance…
What are careers in corporate finance?
The corporate finance professions are numerous because they cover different sub-branches of this field of activity. There are both accountants and risk managers. Here is a non-exhaustive list of the different jobs you can hold in corporate finance:
- Financial analyst. A financial analyst performs financial flow analysis to help companies make informed decisions. They may also be responsible for monitoring the company’s financial performance and recommending strategies to improve that performance.
- Accountant. An accountant is responsible for maintaining the company’s financial records and ensuring that financial transactions are recorded accurately and completely.
- Financial director. He is responsible for the overall management of the company’s finances. They may be responsible for financial planning, cash management and overseeing accounting activities.
- Portfolio manager. A portfolio manager is responsible for managing the investments of a company or individual. They may be responsible for selecting assets to invest in, monitoring the performance of those assets and recommending changes to the portfolio.
- Management control. Is a financial professional responsible for monitoring and controlling a company’s finances. The role of a management controller is to ensure that the business uses its financial resources efficiently and profitably and to recommend improvements to optimize the financial performance of the business.
- Wealth management consultant. A wealth management consultant helps people plan and manage their personal finances. They may be responsible for recommending investments, planning for retirement, and providing general financial advice.
- Risk manager. He is responsible for financial risk management who is responsible for managing and minimizing the risks to which a company may be exposed. The role of a risk manager is to ensure that the business is protected from unforeseen events that could negatively impact its operations, reputation or financial performance.
Read also: All about private equity
Salary 2023 in corporate finance
How much do you earn in corporate finance jobs? As you can imagine, it depends on several factors: the level of the school you graduated from, your professional experience, the companies you have worked for, your level of seniority in the position you wish to fill, your field of specialization…
Here in France, it’s the average salary you can expect to receive for different jobs in corporate finance:
- Financial analyst: from 50,000 to 70,000 euros per year
- Accountant: from 40,000 to 60,000 euros per year
- Chief Financial Officer: 80,000 to 120,000 euros per year
- Portfolio manager: 60,000 to 80,000 euros per year
- Wealth management consultant: 40,000 to 60,000 euros per year
According to data from the Association of Financial and Administrative Professionals (AFP extension), median salaries for corporate finance professionals in the United States in 2023 were as follows:
- Financial Analyst: A salary of $60,000 to $75,000 per year
- Accountant: A salary of $50,000 to $65,000 per year
- CFO: A salary of $120,000 to $175,000 per year
- Portfolio Manager: Fees ranging from $70,000 to $90,000 annually
- Wealth Management Consultant: $50,000 to $70,000 annually
Read also: The average salary in France in 2023 by sector
