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Keiretsu

Definition

A keiretsu is a set of companies with interlocking business relationships and shareholdings. It is a type of informal business group. The keiretsu maintained dominance over the Japanese economy for the second half of the 20th century.

Keiretsu

What is 'Keiretsu'

A Japanese term describing a loose conglomeration of firms sharing one or more common denominators. The companies don't necessarily need to own equity in each other.{C}{C}

Explaining 'Keiretsu'

This term has been in the news every now and then, especially when they talk about Silicon Valley. One example would be the close relationship between AOL and Sun Micro. The two firms don't have ownership in each other, but they work closely on various projects.


Keiretsu FAQ

What is a keiretsu system?

Keiretsu is a Japanese term alluding to a business network comprised of various organizations that have cozy connections and in some cases take little equity stakes in one another, at the same time remaining autonomous operationally.

Do keiretsu still exist?

In today's' world, the keiretsu model operates majorly in banks and trading firms with huge power over each organization, an essential element of the keiretsu model. For instance, every one of Japan's six vehicle organizations has a place with one of the large six keiretsus, as does every single one of Japan's significant hardware organizations.

What is keiretsu system?

Keiretsu is a Japanese term alluding to a business network comprised of various organizations that have cozy connections and in some cases take little equity stakes in one another, at the same time remaining autonomous operationally.

What caused the new keiretsu?

The new keiretsu is a product of the Japanese auto industry crisis. In the mid 1990s, Western vehicle producers started revolutionary cost-cutting projects, powering the development of megasuppliers, for example, Magna, Johnson Controls, and Valeo.

What is zaibatsu and keiretsu?

The keiretsu of Japan emerged out of the prewar zaibatsu. It is however different from the zaibatsu in fundamental manners. The zaibatsu were family-claimed aggregate organizations that were advanced by the Meiji legislature of Japan. The organizations got in kind imposing business models and exceptional advantages from the public authority.

What does Keiretsu mean in Japanese?

headless combine

Is Sony a keiretsu?

In addition to the Big Six, , another gathering of keiretsu, named the Independent Corporate Group, was comprised of Toyota, Hitachi, Toshiba, and Sony.

What is a keiretsu What are some of its distinguishing characteristics?

According to Shimotani (1995:54) a keiretsu can be defined as “the close, long- term business relationships established by large corporations with select groups of smaller firms, and they are linked through investment and the exchange of personnel”.

Further Reading

The governance structure of the Japanese financial keiretsuThe governance structure of the Japanese financial keiretsu
www.sciencedirect.com [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

Shareholding in the keiretsu, Japan's financial groupsShareholding in the keiretsu, Japan's financial groups
www.jstor.org [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

Business networks in postwar Japan: whither the keiretsu?Business networks in postwar Japan: whither the keiretsu?
www.oxfordhandbooks.com [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

The fable of the keiretsuThe fable of the keiretsu
onlinelibrary.wiley.com [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

Propping and tunneling: Empirical evidence from Japanese keiretsuPropping and tunneling: Empirical evidence from Japanese keiretsu
www.sciencedirect.com [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

Keiretsu networks and corporate performance in JapanKeiretsu networks and corporate performance in Japan
www.jstor.org [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

Taxes, keiretsu affiliation, and income shiftingTaxes, keiretsu affiliation, and income shifting
www.sciencedirect.com [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

The effect of market returns, interest rates, and exchange rates on the stock returns of Japanese horizontal keiretsu financial firmsThe effect of market returns, interest rates, and exchange rates on the stock returns of Japanese horizontal keiretsu financial firms
www.sciencedirect.com [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …

The persistence and implications of Japanese keiretsu organizationThe persistence and implications of Japanese keiretsu organization
link.springer.com [PDF]
We rationalize the cross-holdings of debt and equity within the Japanese keiretsu as a contingent governance mechanism through which internal discipline is sustained over time. The reciprocal allocation of control rights supports cooperation and mutual monitoring …


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