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, DevTea), 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: Corporate actions fulfilling Zero Routine Flaring commitments contribute to a global reduction in gas flaring, especially in Africa where public environmental governance is weak. Contrary to anecdotal evidence, we find that the primary drivers of committed firms’ flaring reductions in Africa are operational improvements rather than changes in real asset ownership. While flaring increases for forgone awards and divested assets, corporate actions to fulfill commitments have resulted in an annual net reduction of 58 million metric tons in CO2-equivalent emissions in Africa alone. Inconsistent with greenwashing being a major concern, our findings suggest that commitments are fulfilled by corporate policies that create a uniform firm-wide cost of pollution, incentivizing substantial environmental improvement where the regulatory baseline is low.

Press: Chicago Booth Review

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) relative to preexisting taxation regimes in the African mining sector. 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 profit margins and tax payments, but the economic benefits to Ghanaian mining communities outweigh the forgone taxes. A broader analysis across Africa reveals that these benefits depend on the subnational enforcement capacity of both central governments and local communities, suggesting that the success of LCRs in developing countries is partly attributable to reduced reliance on bureaucratic capacity in favor of private community enforcement.

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

Abstract: We find that trust plays a significant role in retail borrowers' decisions to transact with banks, and that the local news media plays an important role in shaping this trust. We utilize bank enforcement actions publicized in the local news media as a shock to bank reputation that undermines consumers' trust in banks. Survey data indicate that enforcement actions are associated with significant declines in trust in banks and bankers. Using granular loan data from TransUnion that links retail borrowers to banks, we find that originated loans and new borrowers are of lower quality while an enforcement action is open. These effects are not present prior to the enforcement action, indicating that declining borrower and loan quality are not the reasons for enforcement. Consistent with a trust mechanism, the shift towards lower-quality borrowers is more pronounced when survey-based trust measures decline, and local news coverage of enforcement actions is more negative. In contrast, borrower quality shows little change during an enforcement action when local news is positive or conveys the emotion of trust and in regions with no local news outlets, highlighting the news media's crucial role in contextualizing news and shaping consumers' trust in banks. Additional tests reveal that our findings are inconsistent with supply-side effects.

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*, 2025 AAA Annual Meeting (scheduled)

Abstract: We examine the impact of accounting fraud on spatially exposed individuals, including both central and peripheral stakeholders of fraudulent firms. Using a consumer credit panel, we find significant increases in financial distress---measured by debt in collection, credit card delinquencies, and consumer bankruptcies---upon fraud revelation. Post-revelation contagion and pre-revelation positive news explain the impact of fraud on individuals' financial health. Finally, we reveal that misinformed financial decisions before fraud revelation increase individuals' financial distress after revelation. Overall, our results not only demonstrate fraud's detrimental impact on local financial health but also carry important implications for fraud enforcement.

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, 2025 AAA Annual Meeting (scheduled)

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)