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A Critical Review of Overconfidence in Investment Decisions: A Bibliometric Analysis

Author

Listed:
  • Shalini Ojha

    (Research Scholar, Department of Commerce, Gauhati University, Guwahati, Assam, India)

  • Amal Kumar Agarwala

    (Department of Statistics, Arya Vidyapeeth College (Autonomous), Guwahati, Assam, India)

Abstract

The precedence of behavior bias-based studies with respect to investment is quite prevalent. Hence, a bibliometric analysis of available literature may lead to fresh topics in association with overconfidence bias. The literature ranging between 1970 and 2024 were scanned using terms related to overconfidence in finance as keywords to reach the related publications. After screening, 1327 publications related to overconfidence, 728 documents were identified. Martin Weber emerged as the most cited author. SSRN electronic journal, qualitative research in financial matters and review of behavioral finance have published most cited papers in the field of overconfidence and investment decision. The United States have published highest number of papers and citations, while Germany, India and China have also emerged as nations with highest citations. The United States of America has published highest number of papers with citations. Germany, India and China have also emerged as nations with highly citated papers. Considering year on year growth in the publications, more work may be expected from the arena of overconfidence, and authors of the present study have taken the liberty to suggest a few possibilities that can be explored. Studies with risk tolerance, after pandemic impact, experience and financial/tax literacy, loss aversion and availability bias-based studies may be considered by researchers in accordance to overconfidence.

Suggested Citation

  • Shalini Ojha & Amal Kumar Agarwala, 2024. "A Critical Review of Overconfidence in Investment Decisions: A Bibliometric Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 104-109, October.
    • Handle: RePEc:eco:journ1:2024-06-11
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    References listed on IDEAS

    as
    1. Gervais, Simon & Odean, Terrance, 2001. "Learning to be Overconfident," The Review of Financial Studies, Society for Financial Studies, vol. 14(1), pages 1-27.
    2. Gilles Hilary & Lior Menzly, 2006. "Does Past Success Lead Analysts to Become Overconfident?," Management Science, INFORMS, vol. 52(4), pages 489-500, April.
    3. Markus Glaser & Martin Weber, 2007. "Overconfidence and trading volume," The Geneva Papers on Risk and Insurance Theory, Springer;International Association for the Study of Insurance Economics (The Geneva Association), vol. 32(1), pages 1-36, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bibliometric Analysis; Overconfidence; Investment Behaviour; Stock Market; Pandemic;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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