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The Link between Corporate Reputation and Financial Performance and Equilibrium within the Airline Industry

Author

Listed:
  • Andreas-Daniel Cocis

    (Faculty of Economics and Business Administration, Babes-Bolyai University, 58-60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania)

  • Larissa Batrancea

    (Faculty of Business, Babes-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, Romania)

  • Horia Tulai

    (Faculty of Economics and Business Administration, Babes-Bolyai University, 58-60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania)

Abstract

This study examines how corporate reputation is perceived by investors through the financial performance and equilibrium of several airline companies. We used a sample of 22 companies. Nineteen are listed in the World Airline Awards 2018 ranking based on client satisfaction, and three companies are included in the Fortune ranking and enjoying the best corporate reputations in the airline industry. The analyzed period was 2016–2018. The purpose of this study was to rank airline companies based on financial indicators by means of the TOPSIS method to see whether the companies included in the Fortune ranking would keep a similar hierarchy. Results indicated that companies maintained a similar order in the TOPSIS ranking after considering financial performance and equilibrium indicators. The overall conclusion was that companies with a good financial performance and equilibrium enjoyed a good corporate reputation from investors’ point of view.

Suggested Citation

  • Andreas-Daniel Cocis & Larissa Batrancea & Horia Tulai, 2021. "The Link between Corporate Reputation and Financial Performance and Equilibrium within the Airline Industry," Mathematics, MDPI, vol. 9(17), pages 1-12, September.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:17:p:2150-:d:628526
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    References listed on IDEAS

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    1. repec:aer:wpaper:149 is not listed on IDEAS
    2. Anca Nichita & Larissa Batrancea & Ciprian Marcel Pop & Ioan Batrancea & Ioan Dan Morar & Ema Masca & Ana Maria Roux-Cesar & Denis Forte & Henrique Formigoni & Adilson Aderito da Silva, 2019. "We Learn Not for School but for Life: Empirical Evidence of the Impact of Tax Literacy on Tax Compliance," Eastern European Economics, Taylor & Francis Journals, vol. 57(5), pages 397-429, September.
    3. Anna Blajer-Golebiewska & Arkadiusz Kozlowski, 2016. "Financial determinants of corporate reputation: A short-term approach," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 17(2), pages 179-201.
    4. Cravens, Karen & Goad Oliver, Elizabeth & Ramamoorti, Sridhar, 2003. "The Reputation Index:: Measuring and Managing Corporate Reputation," European Management Journal, Elsevier, vol. 21(2), pages 201-212, April.
    5. Feng, Cheng-Min & Wang, Rong-Tsu, 2000. "Performance evaluation for airlines including the consideration of financial ratios," Journal of Air Transport Management, Elsevier, vol. 6(3), pages 133-142.
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    Cited by:

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    2. Maria Ángeles Alcaide & Alberto Celani & Paula Cervera Chasan & Elena De La Poza, 2022. "Mathematical Modeling of the Financial Impact of Air Crashes on Airlines and Involved Manufacturers," Mathematics, MDPI, vol. 10(5), pages 1-18, February.
    3. Huixiang Zeng & Limin Zheng & Xiaoyu Li & Yutong Zhang & Linrong Chen, 2023. "Are optimistic CEOs and pessimistic CFOs the best partners? Evidence from corporate cash holdings," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-19, December.
    4. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.
    5. Samuka Mohanty & Rajashree Dash, 2022. "Neural Network-Based Bitcoin Pricing Using a New Mutated Climb Monkey Algorithm with TOPSIS Analysis for Sustainable Development," Mathematics, MDPI, vol. 10(22), pages 1-23, November.
    6. Samuka Mohanty & Rajashree Dash, 2023. "A New Dual Normalization for Enhancing the Bitcoin Pricing Capability of an Optimized Low Complexity Neural Net with TOPSIS Evaluation," Mathematics, MDPI, vol. 11(5), pages 1-28, February.
    7. Larissa M. Batrancea & Anca Nichita & Andreas-Daniel Cocis, 2022. "Financial Performance and Sustainable Corporate Reputation: Empirical Evidence from the Airline Business," Sustainability, MDPI, vol. 14(20), pages 1-15, October.

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