Correlation between financial performance and brand value:A case study of Turkish Airlines Inc. and Pegasus Airlines Inc.

As an impact of the globalization of the world economy, the necessity of listing the financial resources of companies or entities and monitoring the cash flow has increased. This is an advancement in favor of both company executives and third parties who will invest in, or benefit from the goods or services produced by the company. Financial statements, which can be prepared with different methods for the mentioned purposes, have been subject to consolidation. International Financial Reporting Standards and financial reporting in Turkey according to global criterias have been created understandable and general rules. The ratio of the account items to each other on the financial statements has significant implications for both investors and users of financial reports. The value of the financial reports and the brand produced by the company are provided by positive inputs obtained as a result of both marketing strategies and financial performance. For this reason, Brand Finance data, which is accepted as a respected brand valuation organization worldwide, was taken as a source in this study, and the determination of brand values as a result of the interpretation of the financial statements was examined. In order to examine the relationship between brand value and the financial statements, two firms from airline business were chosen. Since the air transportation is one of Turkey's most recognised industries, the two leading companies of the aviation sector, Turkish Airlines Inc. and Pegasus Airlines Inc. will be compared in this study. As a result, the correlation between the interpretation of the financial statements and the brand value was examined and the positive contributions of the financial analysis on the brand values were evaluated.