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                                                    International Organization

                                                    Article contents

                                                    Using Field Experiments in International Relations: A Randomized Study of Anonymous Incorporation1

                                                    Published online by Cambridge University Press:  09 October 2013

                                                    Michael G. Findley ,
                                                    Daniel L. Nielson  and
                                                    J.C. Sharman
                                                    Michael G. Findley
                                                    Affiliation:
                                                    University of Texas at Austin. E-mail: mikefindley@austin.utexas.edu
                                                    Daniel L. Nielson
                                                    Affiliation:
                                                    Brigham Young University, Provo, Utah. E-mail: dan_nielson@byu.edu
                                                    J.C. Sharman
                                                    Affiliation:
                                                    Griffith University, Brisbane, Australia. E-mail: j.sharman@griffith.edu.au
                                                    Get access

                                                    Abstract

                                                    Efforts to fight international money laundering, corruption, and terrorist financing depend crucially on the prohibition barring the formation of anonymous shell companies. To study the effectiveness of this prohibition, we perform the first international relations (IR) field experiment on a global scale. With university institutional review board (IRB) clearance, we posed as consultants requesting confidential incorporation from 1,264 firms in 182 countries. Testing arguments drawn from IR theory, we probe the treatment effects of specifying (1) the international standards (managerialism), (2) penalties for noncompliance with these standards (rationalism), (3) the desire to follow norms through complying with international standards (constructivism), and (4) status as a U.S. customer. We find that firms prompted about possible legal penalties for violating standards (rationalism) were significantly less likely to respond to inquiries and less likely to comply with international law compared to the placebo condition. Some evidence also suggests that the constructivist condition caused significantly greater rates of noncompliance. The U.S. origin condition and the managerial condition had no significant effects on compliance rates. These results present anomalies for leading theories and underscore the importance of determining causal effects in IR research.

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                                                    Research Article
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                                                    International Organization , Volume 67 , Issue 4 , October 2013 , pp. 657 - 693
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                                                    Copyright © The IO Foundation 2013 

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