Overconfidence Bias in Investment Decisions: A Systematic Mapping of Literature and Future Research Topics

Abstract

The current study uses a systematic literature review to summarize and highlight studies on overconfidence bias in investment decision-making. More specifically, the study synthesizes the overconfidence literature highlighting the year of publication, country of the published articles, research methods, data sources, prominent theories, statistical techniques, citation analysis of the popular articles and authors and future research topics. The authors study 111 documents indexed in Scopus and/or Web of Science databases to recognize research trends regarding overconfidence bias during the last 29 years (1995–2023). The results indicate that most (61.26%) selected studies are empirical. Likewise, secondary data-based articles dominate primary ones. Additionally, the resulting factors can be classified into four themes: the construct of overconfidence bias and investments; success: a cause of overconfidence; gender and overconfidence; and the consequences of overconfidence. To the authors’ best knowledge, this is a unique article in which research outcomes of essential aspects of overconfidence are skimmed systematically.