Corporate finance refers to the sources of funding and the capital structures used by corporations to increase the value of the business, raise operating capital, and improve financial returns to shareholders.
And without the right financing, the chances of your business succeeding are slim to none. Whether you are looking for start-up capital or funds to keep your business operating, it is important to know the best way to go about finding it.
Hence the role of corporate finance in the emerging market economy is for Finance professionals to analyse revenue and expenses to ensure effective use of capital. They also advise businesses about project costs, make capital investments, and structure deals to help companies grow.
Also by reading industry and business publications to understand market conditions, economic forecasts, and trends. As finance professionals need to look at external factors that could potentially help or hurt profitability.
Emerging markets for corporate finance can be attractive for many reasons such as
◾The country may just be becoming industrialised and has tons of room to grow.
◾The middle class is relatively new and growing rapidly.
◾The financial markets are not developed yet, so development there alone will spur growth.
◾More and more deal activity will shift to emerging economies because more companies will be created and more wealth will be generated there.
◾And as companies grow, they need to go public, raise capital, and buy other companies.