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.
Highlights
Introduction the Airline IndustryMathematicsThis research focused on different concepts often studied in the literature, namely the perception of corporate reputation through financial performance and equilibrium
Corporate reputation is linked to financial performance and equilibrium, as Lee and
Companies with a high reputation level register good financial performance and equilibrium levels. Investors who follow both the financial performance and equilibrium of a company and its corporate reputation provided by the Fortune hierarchy will be able to make investment decisions only when companies register positive results
Summary
This research focused on different concepts often studied in the literature, namely the perception of corporate reputation through financial performance and equilibrium. These concepts provide information about the company and reveal a positive or a negative result, so that one can create a real picture of company state of health. Fombrun and Gardberg [2] state that people can be asked to name companies to which they relate and they will voluntarily share an opinion about a particular company. If one asks a sample of people about a company and aggregates their answers, one will get a picture of the reputation of that company. Most managers believe that corporate reputation is one of the most sustainable factors in making companies successful [3]
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