Recent research has focused on the negative consequences of “dark” CEO personality traits for firm outcomes. However, the possible prevalence of these traits among executives suggests they might be adaptive in certain contexts. Here, we examine the nuanced effects of sub-clinical psychopathy—a dark trait comprising boldness, disinhibition, and meanness—on firm innovation output, which is crucial for firm success. We hypothesize that CEO boldness and disinhibition associate with increased innovation, while CEO meanness associates with decreased innovation. Employing videometric measures of triarchic psychopathy on a sample of 198 CEOs across 1,382 firm-year observations from 2000 to 2016, we find strong empirical support for our predictions. Our research highlights both the potential benefits and drawbacks of dark traits in driving important corporate outcomes like innovation.
