Research

Abstract: We examine the impact of conflict-free certifications for small-scale gold mines, introduced to comply with the Dodd-Frank Act, on conflict dynamics in the Eastern DRC. The audit system initiation at Dodd-Frank enactment did not significantly alter conflict patterns, inconsistent with the system deterring armed group financing. Instead, we find that actual audit visits displace armed-group-initiated conflicts from within 10 kilometers of audited mines to areas 25-75 kilometers away. In the aggregate, conflict intensity within 75 kilometers remains largely unchanged, and conflict is not decreasing in certification frequency at the territory level. Overall, these changes in conflict dynamics are inconsistent with what we would expect from a successful certification system but instead suggest that armed groups adjust their protective resource allocation to circumvent the intent of the audit system.

Press: Becker-Friedman Institute Research Brief, The Pie: An Economics Podcast, Chicago Booth Review, SEC Response to GAO Report

Presentations: Copenhagen Business School, University of Chicago* (Booth, Development), University of Rochester (Simon), Brigham Young University (Marriott), Stanford University (GSB), 2024 Midwest International Economic Development Conference* (UChicago), London School of Economics, 2024 Conference on Financial Economics and Accounting* (CFEA), 2024 CSEAR Africa Conference*, 2025 American Economic Association Annual Meeting* (ASSA), 2025 AAA International Accounting Section (IAS) Webinar

Abstract: We examine whether oil and gas corporations fulfill their Zero Routine Flaring commitments in Africa to understand the role of privately enforced sustainability initiatives in the absence of effective host governments. Consistent with firms following through on commitments, gas flaring in continuously operated blocks declines by 35%, with larger reductions in countries with the weakest preexisting governmental oversight and environmental performance. Despite the scope for trade, block divestitures from committed to uncommitted firms are rare. However, when these divestitures do occur, they are associated with an almost 70% increase in flaring. Given the infrequency of divestitures and substantial improvements for continuously operated blocks, commitments are associated with a net reduction in carbon dioxide-equivalent emissions of 43 million metric tons. Overall, our findings suggest that corporate sustainability efforts to meet privately enforced commitments may be particularly beneficial in areas where public governance is an ineffective constraint on corporate behavior.

Press: Chicago Booth Review (forthcoming)

Presentations: University of Chicago* (Booth), 2024 PRI In-Person Academic Network Conference*, 2024 CSEAR Africa Conference, 2025  Oxford CSAE Conference*, 2025 Edinburgh CAS Conference (scheduled)

Abstract: I examine the economic implications of local content requirements (LCRs) for firms, communities, and government finances in Africa. I first demonstrate that, as intended, LCRs in Ghana compel mining companies to prioritize native employment and procurement, thereby significantly increasing economic activity within industrial mining communities. Based on financial statements and reported tax payments, I find that LCRs reduce corporate operating margins and traditional tax revenues, but the economic benefits to Ghanaian mining communities far outweigh the forgone taxes. A broader analysis across Africa also shows increased native employment and economic activity after LCR implementation, with benefits depending on the subnational enforcement capacity of both central governments and local communities.

Presentations: University of Chicago* (Booth), 2025 Stanford-Berkeley DevPEC Conference*

Abstract: We study how consumers’ trust in banks influences their borrowing decisions. We use bank enforcement actions as a shock to bank reputation, undermining consumers' trust in banks. Utilizing granular loan data from a credit reporting agency that links borrowers to banks, we find a decline in borrower and loan quality for loans issued by banks under enforcement. Notably, this decline is absent in news deserts, counties experiencing newspaper closures, and those with fewer newspaper establishments, reinforcing a trust mechanism as poor local information environments mitigate the reputational damage from enforcement. Our findings are not attributable to supply-side factors such as increased lending volume or loosened credit terms. Additionally, survey data indicate that enforcement actions are associated with declining local trust in banks and bankers. Overall, our results suggest that trust in banks influences borrower behavior.

Presentations: 2024 Haskayne & Fox Accounting Conference (UCalgary), Hong Kong University (Business School), City University of Hong Kong (School of Business), 2024 CAFRAL Annual Conference, 2024 ISB Accounting Research Conference, 2025 Hawaii Accounting Research Conference (HARC), 2025 EFA Annual Meeting*

Abstract: This study examines how accounting fraud affects the financial health of individuals who reside in spatial communities where economically important but fraudulent firms are headquartered. Utilizing a U.S. consumer credit panel with detailed credit histories, we analyze both financial decision-making before fraud revelation and financial distress after revelation. Upon revelation, we find significant increases in financial distress indicators among spatially exposed individuals. On average, we observe that debt in collection increases for one in every hundred to two hundred individuals while credit card delinquency and consumer bankruptcy are similarly affected. Further, we reveal that such financial distress increases with misinformed financial decisions before fraud revelation. Overall, we offer critical insight into the adverse effects that accounting fraud can have on a broad set of individuals beyond a firm’s central stakeholders.

Presentations: University of Chicago (Booth), Paderborn University, 2023 TRR 266 Conference, IE Business School, IESEG School of Management, Erasmus University Rotterdam, 2024 VHB Annual Meeting

Abstract: We provide twelve best practices and discuss how each practice can help researchers accurately, credibly, and ethically use Generative AI (GenAI) to enhance experimental research. We split the twelve practices into four areas. First, in the pre-treatment stage, we discuss how GenAI can aid in pre-registration procedures, data privacy concerns, and ethical considerations specific to GenAI usage. Second, in the design and implementation stage, we focus on GenAI's role in identifying new channels of variation, piloting and documentation, and upholding the four exclusion restrictions. Third, in the analysis stage, we explore how prompting and training set bias can impact results as well as necessary steps to ensure replicability. Finally, we discuss forward-looking best practices that are likely to gain importance as GenAI evolves.

Presentations: Workshop for Gary Charness (In Memoriam)