Category:Corporate financial management
Overview of corporate financial management
Corporate financial management responsibilities include:
- Corporate finance
- Long-term funding
- Investment and
- Intercompany funding
Each of these responsibilities is a core technical competency for treasurers, as identified by the ACT's Competency Framework.
They are each discussed in more detail below.
Corporate finance theory (risk/reward) is applied in practice to evaluate sources and uses of finance. This encompasses everything from capital structure (debt, equity and dividend policy), through major business transformations (e.g. mergers and acquisitions) to individual financing decisions (e.g. whether to buy a particular machine).
The success of the organisation is dependent on access to funds. Identification of the most appropriate sources of funding to achieve the organisation's medium / long term objectives and putting funding solutions (including documentation) in place will ensure that funding is available whenever required.
Treasury needs to be prepared to handle cash surpluses as well as borrowing requirements. A financial investment strategy (based on security, liquidity and yield) that is consistent both with the needs of the business and with its risk appetite, should be in place as well as methodology to monitor the creditworthiness of investment counterparties.
Intercompany funding of subsidiary operations is generally an efficient source of funds for an organisation. It may not be straight forward to implement or manage, as tax, legal and regulatory aspects must all be taken into account especially when setting up intercompany structures such as netting systems, In House Banks etc.
- ACT Competency Framework
- Corporate finance
- Financial management
- In-house bank
- Technical skills
This category has the following 2 subcategories, out of 2 total.
Pages in category ‘Corporate financial management’
The following 165 pages are in this category, out of 165 total.
- Capital deepening
- Capital intensity
- Capital market
- Capital Requirements Directive
- Capital to labour ratio
- Certificate of ownership
- Classical economics
- Concert party
- Contingency plan
- Converting from par rates
- Converting from zero coupon rates
- Coronavirus crisis
- Corporate financial management
- Credit spread
- Credit spread risk
- Scenario analysis
- Secondary market
- Secured Overnight Financing Rate
- Securities Financing Transaction
- Shareholder Rights Directive
- Sharia-compliant fixed income capital markets instruments for cross-border transactions
- Standby credit facility
- Sterling overnight index average
- Structured finance