Year: 2019
Type: article
Study design: Observational Study
Abstract: Previous research has shown that overconfidence is associated with a decrease in the quality of decision making and, therefore, decision outcomes. However, less is known about the conditions or circumstances that reduce financial overconfidence. Using data from two national studies, this study was designed to provide insights into the dynamics of intrahousehold financial decision making by examining the role of shared decision making in reducing overconfidence bias. Findings suggest that a psychological sense of shared ownership of money is associated with lower levels of overconfidence. With regard to financial planning practice, these results suggest that married individuals who believe in shared ownership of household money tend to have lower levels of overconfidence.
Source: Financial Planning Review
DOI: 10.1002/cfp2.1032
Authors: Dee Warmath, Dominik Piehlmaier, Cliff Robb
Institutions: University of Georgia, University of Wisconsin–Madison
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2938345993