“…Prior work sheds light on the adverse effects of institutional uncertainty on various economic and social outcomes (Bylund & McCaffrey, 2017; Koyama & Rubin, 2022). Societies with uncertain institutional environments tend to be poorer and more unequal (Deaton, 2013; Milanovic, 2019; Rubin, 2008), more likely to violate human rights (Kizilkaya, 2021; Welzel, 2013), and more likely to experience profound sustainability issues (Lisciandra & Migliardo, 2017; Wang, Cardon, Liu, & Madni, 2020). At the firm level, an uncertain environment is costly and unpredictable, which makes it more difficult for companies to plan, manage transaction costs, and implement strategies (Luiz, Magada, & Mukumbuzi, 2021).…”