The Role of Membership Rules in Regional Organizations

This paper argues that success in the struggle for regional integration hinges foremost on the degree of heterogeneity among regional states. Regional organizations therefore must consider how to optimize their leverage to forge convergence that will foster agreement and cooperation. To do so, regional organizations can rely on inclusive designs that admit member states and then seek to mold their behavior ex post, or they can use exclusive designs that condition membership on ex ante changes in state behavior. This paper examines the success of these designs in using various ex ante versus ex post tools in soliciting cooperative behavior among regional states, arguing that ex ante tools generally have greater advantages. However, because the advantages vary by issue areas, regions may benefit from creating layers of institutions with different designs. Finally, even after admitting states, regional organizations have options for varying membership rules across different areas of cooperation. Drawing especially on the European experience, the paper considers these various forms of differentiated rules that organizations can use to forge cooperation among different groups of member states despite remaining differences.Regional integration; international cooperation; membership rules

Politics by Number: Indicators as Social Pressure in International Relations

The ability to monitor state behavior has become a critical tool of international governance. Systematic monitoring allows for the creation of numerical indicators that can be used to rank, compare and essentially censure states. This article argues that the ability to disseminate such numerical indicators widely and instantly constitutes an exercise of social power, with the potential to change important policy outputs. It explores this argument in the context of the United States’ efforts to combat trafficking in persons and find evidence that monitoring has important effects: countries are more likely to criminalize human trafficking when they are included in the US annual Trafficking in Persons Report, while countries that are placed on a “watch list” are also more likely to criminalize. These findings have broad implications for international governance and the exercise of soft power in the global information age

Politics by Number: Indicators as Social Pressure in International Relations

The ability to monitor state behavior has become a critical tool of international governance. Systematic monitoring allows for the creation of numerical indicators that can be used to rank, compare, and essentially censure states. This article argues that the ability to disseminate such numerical indicators widely and instantly constitutes an exercise of social power, with the potential to change important policy outputs. It explores this argument in the context of the United States’ efforts to combat trafficking in persons and find evidence that monitoring has important effects: Countries are more likely to criminalize human trafficking when they are included in the U.S. annual Trafficking in Persons Report, and countries that are placed on a “watch list” are also more likely to criminalize. These findings have broad implications for international governance and the exercise of soft power in the global information age.Governmen

The Folly Of Making EPS Comparisons Across Companies: Do Accounting Textbooks Send The Correct Message?

This paper demonstrates why EPS comparisons across companies are meaningless. An example is provided showing how a company with a higher ROE than another company may have a lower EPS simply from having a lower book value per share (and more shares outstanding) than the comparison company. While ROE comparisons across companies can be useful, cross-company EPS comparisons are meaningless due to the arbitrary number of shares outstanding across companies. The authors review the EPS discussion of 31 financial and intermediate accounting textbooks aimed at US students and find that six of these textbooks incorrectly assert or imply that cross-company EPS comparisons are meaningful. Over 50% of the textbooks reviewed provide no warning that cross-company EPS comparisons should be avoided

Introduction: The Power of Global Performance Indicators

In recent decades, IGOs, NGOs, private firms and even states have begun to regularly package and distribute information on the relative performance of states. From the World Bank\u27s Ease of Doing Business Index to the Financial Action Task Force blacklist, Global Performance Indicators (GPIs) are increasingly deployed to influence governance globally. We argue that GPIs derive influence from their ability to frame issues, extend the authority of the creator, and—most importantly —to invoke recurrent comparison that stimulate governments\u27 concerns for their own and their country\u27s reputation. Their public and ongoing ratings and rankings of states are particularly adept at capturing attention not only at elite policy levels but also among other domestic and transnational actors. GPIs thus raise new questions for research on politics and governance globally. What are the social and political effects of this form of information on discourse, policies and behavior? What types of actors can effectively wield GPIs and on what types of issues? In this symposium introduction, we define GPIs, describe their rise, and theorize and discuss these questions in light of the findings of the symposium contributions

Governance by Other Means: Rankings as Regulatory Systems

This article takes the challenges of global governance and legitimacy seriously and looks at new ways in which international organizations (IOs) have attempted to ‘govern’ without explicit legal or regulatory directives. Specifically, we explore the growth of global performance indicators as a form of social control that appears to have certain advantages even as states and civil society actors push back against international regulatory authority. This article discusses the ways in which Michael Zürn\u27s diagnosis of governance dilemmas helps to explain the rise of such ranking systems. These play into favored paradigms that give information and market performance greater social acceptance than rules, laws, and directives designed by international organizations. We discuss how and why these schemes can constitute governance systems, and some of the evidence regarding their effects on actors’ behaviors. Zürn\u27s book provides a useful context for understanding the rise and effectiveness of Governance by Other Means: systems that ‘inform’ and provoke competition among states, shaping outcomes without directly legislating performance

The Concept of International Delegation

This article defines and clarifies the concept of international delegation from both a legal and a social-science perspective. In this respect, its approach is similar to that of The Concept of Legalization, by Kenneth Abbott, Robert Keohane, Andrew Moravcsik, Anne-Marie Slaughter, and Duncan Snidal.2 Although these authors properly treat international delegation as one component of legalization in international relations, delegation is worth considering separately because it raises unique issues. The factors that affect how one might classify international delegations may also differ from legalization more generally. Indeed, some factors may even weigh in opposite directions -- for example, precision indicates a high level of legalization, but it may indicate a low level of delegation. The article begins by presenting a definition of international delegation as a grant of authority by two or more states to an international body to make decisions or take actions. Next, it describes the types of international bodies to which states may grant authority. Much of the work on international delegation to date has focused on grants of authority to bureaucracies and courts. While we of course include these grants of authority in our analysis, our focus is broader, in that it also includes grants of authority to collective bodies and subgroups of states. The article then identifies eight types of authority that states may grant: legislative, adjudicative, regulatory, monitoring and enforcement, agenda-setting, research and advice, policy implementation, and redelegation. International bodies will often exercise more than one type of authority, and there will sometimes be uncertainties about whether a particular type of authority falls into a particular category. Distinguishing between the different types of authority is important, however, because many of the existing arguments and theories about delegation may not apply equally across the different types of authority delegated. Failure to appreciate the variety in the types of authority delegated may therefore lead to misleading generalizations. Next, the article discusses how the extent of an international delegation can vary depending on its legal effect and the degree of independence of the international body. These factors have not yet been systematically explored, although they modify the nature of delegation in significant ways. After developing the typology, the article considers some of the benefits and costs of international delegation in light of this typology. The article concludes with a discussion of some of the questions raised by the typology and its implications for further research

A Financial Analysis Case Of Amazon.Com And Barnes & Noble With Emphasis On The Impact Of ROE Versus EPS: Accounting Case And Instructor Notes

This case follows two accounting interns working for a not-for-profit organization who have been asked to perform a financial analysis of two real life companies (Amazon.com and Barnes &Noble). The interns have been asked to assist the organization with a financial statement analysis of the companies in order to help the not-for-profit make an important investment decision.  The case requires the students to perform some simple ratio analyses, with a particular emphasis on how to utilize Return on Equity (ROE) and Earnings per Share (EPS) information when those values appear to provide contradictory information.  In particular, one of the primary goals of this case study is to have students discover how one company (Amazon.com) can have a greater ROE, even though the competitor (Barnes & Noble) has a larger EPS and how this seemingly contradictory information should be used in financial analysis.  Students will have the opportunity to consider which metric (ROE or EPS) is safe to use in cross-company comparisons and will use that analysis, in conjunction with other basic ratios, to provide a financial analysis report comparing the two companies. The case is appropriate for beginning financial accounting classes and intermediate accounting