Corporate Finance as a Determinant of Corporate Management and Sustainable Development of Modern Business Systems

Abstract

This work explores the possibility of studying corporate finance, with the aim of acquainting students, business people and any other persons with the work experience in the field of economy with the theory and practice of corporate finance, how to assess the business of the company, make investment and financial decisions, evaluate shares and bonds, understand the relationship between risk and return, and create an optimal business policy. The competencies gained in this field shall provide for analysing financial statements, analysing capital structure and its impact on the company value, understanding the dividend policy, making investment decisions, gaining basic professional and scientific knowledge in the field of corporate management and corporate finance, for the purpose of sustainable development of modern business systems, which will immediately contribute to strengthening corporate management structures with the aim of bringing Bosnia and Herzegovina closer to European integration and inclusion in the global economy. Corporate finance review the financial decisions of a corporation, with a view of the role of shareholders in the process, financial standing of corporations, functioning of corporations starting with own capital, loan capital and share capital, they assess the dividends which represent distribution of the net profit of the shareholders in the form of cash, as a reward for their investment in corporations.