Brand value impact on company's economic value added evaluation model

Abstract

Research limitations/implications – The research focused on Lithuania market and one sector. Although social and economic background of Lithuania is quite differentiates from western countries. The discrepancy of capital markets is also distinct. Therefore, it would be very useful to compare the research results with foreign countries, within different industries in the future studies. Practical implications – The paper provides the opportunity to assess the brand value of SME’s and evaluate other factors influencing EVA in process of company growth. According to the study strong positive relationship between the EVA, brand value and EBITA, negative - with the capital structure was observed. This is partly confirmed by foreign scientists on the survey findings. In particular, when assessing the company generated revenues, net profit, brand value dynamics show a positive trend to economic added value of the company. Therefore, some advice can be given in order to increase the company’s economic value added. Originality/Value – The research paper is the first paper in Lithuania investigating factors influencing EVA with a special focus on brand value. The evaluation model of brand value impact on EVA was created.