Managerial finance

Managerial finance is the branch of finance that concerns itself with the financial aspects of managerial decisions. [1] Finance addresses the ways in which organizations (and individuals) raise and allocate monetary resources over time, taking into account the risks entailed in their projects; Managerial finance, then, emphasizes the managerial application of these finance techniques and theories. [2]

The techniques assessed (and developed) are drawn in the main from managerial accounting and corporate finance; the former allow management to better understand, and hence act on, financial information relating to profitability and performance; the latter are about optimizing the overall financial-structure; see Financial management § Role.

In both cases, the discipline addresses these from the Managerial perspectives of Planning, Directing, and Controlling;[1] here in the more specific context of strategic planning, organizing, directing, and controlling of the organization's financial undertakings.

Academics working in this area are typically based in business school finance departments, in accounting, or in management science.


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