20.500.12556/RUL-164813 A systematic literature review on overconfidence and related biases Influencing Investment Decision Making In the current market scenario, it has been observed that biases are among the most significant factors influencing investment decisions. Among these biases, overconfidence is a common phenomenon managers tend to exhibit while making decisions. To understand the role of overconfidence bias in investment decision making, this study thoroughly scrutinizes and consolidates the current research on overconfidence bias. To achieve the objective, this study performs a systematic review of literature utilizing the PRISMA approach and examines 92 journal articles published in the last 20 years. Results suggest that the other two biases—hindsight and confirmation—are related to overconfidence bias. In addi- tion, the review suggests that biases result in three major outcomes. The first, positive, aspect pertains to the promotion of mental well-being and significant allocation to research and development investments. Conversely, the second, negative, aspect involves the manipulation of operating cash flow, which tends to diminish the value of shareholders. Third, there is a preference for internal financing over external financing options. Furthermore, the research also suggests factors that may overcome the influence of the overconfidence bias. This study demonstrates its originality through thematic analysis, which effectively examines multiple dimensions of biases. Moreover, incorporating these research findings can enhance managerial decision-making processes, promote more objective assessments, and ultimately improve the overall quality of investment choices. enterprises investments decision making literature review overconfidence bias confirmation bias hindsight bias investment decision making managerial decision making investment biases podjetje investicije odločanje pregled literature true false true Angleški jezik Slovenski jezik Članek v reviji 2024-11-13 09:15:20 2024-11-13 09:18:14 2024-11-22 14:56:14 0000-00-00 00:00:00 2024 0 0 Str. 130-150 iss. 2, article no. 4 Vol. 26 Jun. 2024 0000-00-00 Zaloznikova Objavljeno NiDoloceno 0000-00-00 0000-00-00 0000-00-00 658 2335-4216 10.15458/2335-4216.1338 200328451 2.4_A_Systematic_Literature_Review_on_Overconfidence_and_Related_Bias.pdf 2.4_A_Systematic_Literature_Review_on_Overconfidence_and_Related_Bias.pdf 1 FF15E93280FFCF122E97B5EB0AB9FB4D 1e3012ae32d93fb20493da0540b2fc737a58216405c3810d71ce0ed6807ec9c8 5a66876d-a197-11ef-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=195541 https://www.ebrjournal.net/home/vol26/iss2/4/ 0 696a12c3-a197-11ef-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=195542 Ekonomska fakulteta Economic and business review 0 0 0