Gender effects on bias in complex financial decisions

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Evidence suggests that men are more confident than women in complex financial decision making. However, researchers have not reconciled whether men and women are accurate, overconfident, or underconfident in their confidence estimations. In addition, two problems appear in past studies' measurement of confidence bias - lack of theoretical basis and failure to adjust for measurement error. To address these limitations, we investigated men's and women's self-efficacy and personal goals as compared to their actual performance in a complex financial task. Men's self-efficacy and personal goals were significantly higher than women's. Throughout the task, women were more underconfident than men, although men were also underconfident. We offer implications for management practice and future research directions. [PUBLICATION ABSTRACT]