Investment Bank Competition in Indonesia

Authors

  • Ema Sulisnaningrum STIE Jaya Negara Tamansiswa Malang, Indonesia

Keywords:

Capital, Indonesia, Investmant Bank, Competition

Abstract

We collect samples from the annual reports of 5 investment banks in Indonesia from 2000 to 2020 as
data and samples from our research. We find that cost has the lowest effect compared to other
indicators with a Optimized Weight of 1.8% and market making activity is the most influential
indicator of competitiveness with a Optimized Weight of 22.5%. Market making provides the greatest
attraction to clients in the investment bank business because in the market business it is the most
important thing so that the ability of investment companies in market making to obtain capital for
clients is the highest attraction because it can meet client needs related to capital. Costs correlated with
reputation and costs in the investment bank business are almost the same from one bank to another so
that the efficiency or ability of investment banks in providing the best prices does not provide a strong
enough appeal to clients. This is also influenced by the investment bank market segment, which is a
company segment that has large enough wealth assets so that costs are not too much of a problem for
the client as long as it is rational and profitable.

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Published

2022-11-19