Researcher ORCID Identifier

0009-0001-4177-4390

Graduation Year

2025

Date of Submission

12-2024

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Murat Binay

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2024 Kathleen Humato

Abstract

My thesis investigates the impact of Japanese keiretsu-like structures on the financial performance of Indonesian businesses. Using data from publicly listed companies in Indonesia across seven key industries—mining, manufacturing, construction, chemicals, information and communication, financial services, and transportation—this study analyzes financial metrics such as Return on Assets (ROA), Return on Equity (ROE), and Weighted Average Cost of Capital (WACC) across a six-year period. My findings reveal that the keiretsu structure does not necessarily translate into the same benefits in Indonesia as it does in Japan, more specifically they differ between various industries. In capital intensive industries, keiretsu-like firms generally outperform non-keiretsu firms due to operational synergies and more efficient asset utilization, however, non-keiretsu firms perform better in industries requiring adaptability. Overall, my research demonstrates that the effectiveness of the keiretsu structure depends on the context and nature of the industry and local economy.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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