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Financial Performance and Sustainable Corporate Reputation: Empirical Evidence from the Airline Business

Author

Listed:
  • Larissa M. Batrancea

    (Department of Business, Babeş-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, Romania)

  • Anca Nichita

    (Faculty of Economics, “1 Decembrie 1918” University of Alba Iulia, 15−17 Unirii Street, 510009 Alba Iulia, Romania)

  • Andreas-Daniel Cocis

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

Abstract

A good corporate reputation is essential, and it is becoming increasingly relevant for both companies and stakeholders. In this context, Fortune magazine publishes an annual ranking of corporate reputation, therefore listing the most admired companies in the world. Since corporate reputation is considered an intangible asset, it is difficult for competing firms to create similar products or services in the long run. Numerous researchers have concluded that financial performance is strongly connected to corporate reputation. The purpose of this study was to elicit the importance of financial performance in determining an adequate sustainable level of corporate reputation. Using financial indicators and the VIKOR method for a sample of airline companies, we compared the rankings generated by the VIKOR method to the ones published by Fortune . Empirical results showed that when introducing additional financial indicators in the VIKOR method, the VIKOR ranking tends to become similar to the Fortune one. When we introduced 10 financial indicators in the VIKOR method, we obtained similar rankings in 8 of the 10 years of analysis. Our study addresses stakeholders who follow corporate reputation details and may assist them in formulating investment decisions by relying on financial results.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13567-:d:948235
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    References listed on IDEAS

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    5. Hyoungjin Lee, 2023. "Surviving the Time: CEO Tenure and Its Impact on Risky Foreign Direct Investment in Conflict-Prone Belt and Road Initiative Participant Countries," Sustainability, MDPI, vol. 15(17), pages 1-18, September.
    6. Shuang Huang & Han Yu & Zheng Zhang & Yedong Feng, 2025. "Can state ownership help facilitate the digital transformation of private sector enterprises? Evidence from China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    7. Ali Katrancı & Nilsen Kundakcı & Dragan Pamucar, 2025. "Financial performance evaluation of firms in BIST 100 index with ITARA and COBRA methods," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-28, December.

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