Multinational Corporate Influence in Democracies: Evidence from Switzerland

Abstract

This thesis seeks to uncover the mechanisms and extent to which multinational corporations (MNCs) influence political outcomes via evidence from Switzerland. Prior literature has suggested that voter turnout is shaped by an individual’s cost-benefit analysis of political participation. This thesis uses publicly available ballot data on Swiss referendum elections to evaluate whether corporations can shape that analysis. Using a fixed effects regression model, clustering by ballot to account for intra-day similarities, I find that MNC support for a referendum strongly increases acceptance rates, and this effect is strengthened in regions where these corporations are headquartered. For voter turnout, I find that decision-makers are strongly motivated by emotional responses to vote. When there is strong opposition to a proposal, turnout increases. In addition, aggressive messaging for or against a proposal are associated with increasing turnout. To qualitatively explain my findings, I rely on interviews conducted with leaders of Swiss MNCs, which suggested that while uninformed voters may take cues from corporate recommendations on economic and international affairs, corporations give recommendations on social issues based on voter trends. These findings demonstrate the necessity for research into corporate political influence, especially within the context of democratic institutions.