This study explores the interplay between CEO duality and social dominance in shaping a firm's temporal orientation. Drawing on social psychology research, we argue that CEOs high in social dominance perceive duality as an opportunity to enhance control, resulting in a longer firm temporal orientation. Conversely, CEOs low in social dominance view duality as a threat, leading firms to a focus on short-term outcomes. Analyzing data from 447 CEOs in biopharmaceutical firms, we find that CEOs high in social dominance who also serve as the chairperson of the board, tend to receive higher long-term compensation, invest more in R&D, maintain higher cash reserves, and have lower net working capital. In contrast, those low in social dominance exhibit the opposite trends. Our findings contribute to practice and research on corporate governance by highlighting the psychological factors that influence CEO decision-making, offering a nuanced understanding of how personality traits interact with board structures to shape firm strategy.
