Multinational Financial Management: Research on Economic Value Added

This paper discusses a measure of estimating the wealth creation potential of capital investments in multinationals. This measure is called "Economic Value Added" (EVA). We first demonstrate how EVA works, and then propose a new way of applying EVA-ICT. The most effective economic impact of information, telecommunications and computer technologies (ICTs) on the competitive performance of a company is achieved when technologies are used to enable synergies among companies' core business activities, their supporting industrial structures and their external drivers. This is done all together under a holistic framework, and a common strategic vision of high competitiveness performances. Within this framework, it is possible to identify the effective influence of technological enablers over the regional macroeconomic drivers, the attractiveness of industrial sectors, their related and complementary industries, the strategic performance of individual companies, and, finally, over specific core processes of the business units. This is done as to create unique industrial competitive drivers. The purpose of this paper is to identify the ICT mechanisms, systems and strategies capable of creating effective economic value added, wealth and shared prosperity for firms. This is done for their industrial sectors and for the communities of regions mainly from less developed countries.