Overconfidence Bias in Financial Decision-Making: Evidencefrom Culinary MSMEs in Banjarmasin, ‎Indonesia

  • Authors

    • Rika Sylvia Doctorate Program Department of Economics and Business Universitas Lambung Mangkurat Banjarmasin, Indonesia
    • Asrid Juniar Economics and Business Universitas Lambung Mangkurat Banjarmasin, Indonesia
    • Sarwani Economics and Business Universitas Lambung Mangkurat Banjarmasin, Indonesia
    • Dian Masita Dewi Economics and Business Universitas Lambung Mangkurat Banjarmasin, Indonesia
    https://doi.org/10.14419/vn7scf57

    Received date: December 31, 2025

    Accepted date: January 7, 2026

    Published date: January 14, 2026

  • Overconfidence Bias; Financial Decision-Making; Illusion of Control; Culinary Micro-Enterprises; Behavioral Finance; ‎Banjarmasin

  • Abstract

    This study examines the role of overconfidence bias in shaping financial decision-making among culinary MSMEs in ‎Banjarmasin, Indonesia. Although overconfidence has been recognized as a behavioral bias influencing financial ‎decisions, empirical evidence in the context of MSMEs in developing countries is still limited. This study used a ‎quantitative approach, collecting data from 80 culinary MSMEs, which were then analyzed using Partial Least Squares–‎Structural Equation Modeling (PLS-SEM). Overconfidence was operationalized as a multidimensional construct ‎consisting of overestimation, overprecision, and illusion of control. The results showed that only the illusion of control ‎dimension had a positive and significant effect on financial decision-making, while overestimation and overprecision did ‎not show a significant effect. This finding indicates that MSMEs tend to rely on subjective perceptions of self-control ‎rather than measurable financial analysis in making financial decisions. This study contributes to the behavioral finance ‎literature by highlighting the heterogeneity of overconfidence dimensions in the micro-enterprise context and providing ‎practical implications for the development of behavior-based financial literacy programs for entrepreneurs in emerging ‎markets‎.

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  • How to Cite

    Sylvia, R., Juniar , A. ., Sarwani, & Dewi, D. M. . (2026). Overconfidence Bias in Financial Decision-Making: Evidencefrom Culinary MSMEs in Banjarmasin, ‎Indonesia. International Journal of Accounting and Economics Studies, 13(1), 148-153. https://doi.org/10.14419/vn7scf57