Narcissism, cognitive biases, and risk in investment decisions

The investment decision-making process is highly complex, as each individual has specific personality traits, a set of psychological characteristics that play a key role in their judgements. In addition to cognitive biases, the relevant literature presents narcissism as an influential variable in the judgement and choice process. Other factors, no less important, such as attitude and risk perception, have been highlighted in recent studies as determinants of risk decision-making. In this sense, the general objective of this study was to investigate the relationship between narcissism, cognitive biases, attitude, perception and risk behaviour through structural equation analysis. From this perspective, a descriptive, quantitative study was developed, whose sample was non-probabilistic by random selection from the population of undergraduate students in Business Administration and Accounting at a Higher Education Institution.