Dominic Chai, S.J., Ph.D.

Associate Dean for Strategy and Mission, College of Business Administration Loyola Marymount University

  • Los Angeles CA

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Biography

Dominic Chai, S.J., Ph.D., is Associate Professor of Management and Associate Dean for Strategy and Mission at Loyola Marymount University’s College of Business Administration. He earned a bachelor’s degree from the University of California, Berkeley, a doctorate from the London School of Economics, and a licentiate in sacred theology from Boston College. He has held faculty positions at Manchester Business School, Seoul National University, Birkbeck College, University of London, and the Pontifical Gregorian University in Rome, teaching strategic management and business ethics. His industry experience includes serving as an executive at Hyundai Development Company in Korea, where he led global strategy and launched ventures for value creation and synergy across the business group. During the recent pandemic, he was missioned to the Vatican Dicastery for Promoting Integral Human Development, where he co-coordinated the Vatican COVID-19 Commission’s Economy Taskforce, advocating for debt relief in impoverished nations, and forging partnerships to bring Laudato Si’ into action. Currently, Fr. Chai collaborates with the International Association of Jesuit Business Schools (IAJBS) to strengthen the global network of Jesuit institutions committed to addressing societal challenges. He is also a research associate at the University of Cambridge's Centre for Business Research. His research interests center on integrating Catholic Social Thought into economic discourse, in hopes of advancing the well-being of global society and the common good.

Education

Boston College

S.T.L.

Systematic Theology

2025

Loyola University Chicago

M.A.

Theological Studies

2020

London School of Economics and Political Science (LSE)

Ph.D.

Management

2009

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Areas of Expertise

Strategy
Corporate Governance
Business Ethics
Catholic Social Thought
Communal Discernment

Industry Expertise

Corporate Leadership
Religious Institutions

Articles

Environmental transparency and investors' risk perception: Cross‐country evidence on multinational corporations' sustainability practices and cost of equity

Business Strategy and the Environment, 2021-12, Vol.30 (8), p.3975-4000

E. P. Yu, A. Tanda, B. V. Luu & D. H. Chai

2021-12-01

We explore whether a greater amount of environmental disclosure can reduce a firm's ex ante cost of equity. This could occur because the quantity of environmental information changes investors' risk perception of the company, thereby influencing its ex ante cost of equity. Our study is a cross‐country analysis of 1481 multinational corporations (MNCs) across 43 countries and territories from 2013 to 2019. Firstly, we measure investors' risk perception as a firm's ex ante cost of equity by employing five different valuation models, all based on equity analysts' forecasted data. We then investigate whether large quantities of environmental information disclosed by an MNC affect its ex ante cost of equity. We find evidence that investors price the amount of environmental disclosure. More environmental disclosure decreases a firm's ex ante cost of equity because it lessens investors' information asymmetry. However, this relationship is non‐linear. Once the amount of environmental disclosure data exceeds a certain threshold level, a firm's ex ante cost of equity will rise again. Our empirical results also suggest that non‐financial factors at the country level play a role in shaping how investors perceive a firm's riskiness. Locating the firm in a country with better environmental performance and a higher score of the human development index can reduce investors' risk perception and result in a lower ex ante cost of equity. A policy implication of our findings is that a global standardised and effective corporate sustainability reporting is needed to provide investors a more holistic view for evaluating the riskiness of their investments.

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Unexpected corporate outcomes from hedge fund activism in Japan

Socio-Economic Review, 2020-01, Vol.18 (1), p.31-52

J. Buchanan, D. H. Chai & S. Deakin

2020-01-01

Abstract Hedge fund activism has been identified in the USA as a driver of enduring corporate governance change and market perception. We investigate this claim in an empirical study to see whether activism produced similar results in Japan in four representative areas: management effectiveness, managerial decisions, labour management and market perception. Experience from the USA would predict positive changes at Japanese target companies in these four areas. However, analysis of financial data shows that no enduring changes were apparent in the first three areas, and that market perception was consistently unfavourable. Our findings demonstrate that the same pressures need not produce the same results in different markets. Moreover, while the effects of the global financial crisis should not be ignored, we conclude that the country-level differences in corporate governance identified in the varieties of capitalism literature are robust, at least in the short term.

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Taking a Horse to Water? Prospects for the Japanese Corporate Governance Code

Journal of Japanese Law, 2019-05, Vol.47, p.69-108

J. Buchanan, D. H. Chai & S. Deakin

2019-05-01

In 2014–2015 Japan implemented a series of reforms to its corporate governance regime. The principal measures adopted were the country’s first Corporate Governance Code, revisions to its Companies Law, and a Stewardship Code, together with a report (the Itō Review) on corporate competitiveness and incentives for growth. We frame our analysis by a consideration of what institutional theory has to say about the relationship between formal and informal norms and practices. We then examine the manner in which the current reforms were devised and implemented, their content, and the influences that shaped them. We suggest that despite a pattern of embedded institutions resisting regulatory pressures for change in recent years, Japanese corporate governance may now have reached one of its historical turning points. The introduction into Japan of the “comply or explain” approach, the major innovation that distinguishes this reform exercise, is a significant moment. The Stewardship Code has the potential to co-opt institutional investors’ interests to the economic reform agenda of the political class. At the same time, there are potential obstacles to unqualified adoption of the Corporate Governance Code, especially for smaller companies that lack administrative resources. Moreover, some doubt remains regarding the ability of corporate governance reforms to deliver the kind of economic revival that politicians are seeking. Thus the question of whether the Corporate Governance Code will bring about lasting change in Japanese corporate practice remains an open one.

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