The impact of shared financial decision making on overconfidence for married adults

Warmath, Dee, Piehlmaier, Dominik and Robb, Cliff (2019) The impact of shared financial decision making on overconfidence for married adults. Financial Planning Review, 2 (1). pp. 1-14. ISSN 2573-8615

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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.

Item Type: Article
Keywords: Overconfidence, Financial Decision-Making, Marriage
Schools and Departments: School of Business, Management and Economics > Strategy and Marketing
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG4501 Investment, capital formation, speculation
H Social Sciences > HM Sociology > HM1001 Social psychology > HM1041 Social perception. Social cognition Including perception of the self and others, prejudices, stereotype
Depositing User: Dominik Piehlmaier
Date Deposited: 08 Nov 2019 11:21
Last Modified: 08 Nov 2019 13:26
URI: http://sro.sussex.ac.uk/id/eprint/87910

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