Citation:

Amerta Mardjono, Haris Maupa, Ignatius Roni Setyawan. "Decoding Leadership Bias in the Digital Era: A Systematic Literature Review of CEO Overconfidence, Risk-Taking, and Firm Value in Digital Banking" International Research Journal of Economics and Management Studies, Vol. 4, No. 8, pp. 110-130, 2025. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V4I8P113

Abstract:

This study presents a Systematic Literature Review (SLR) examining the relationship between CEO overconfidence, risk-taking behavior, and firm value in digital banking. Drawing from 25 peer-reviewed journal articles published between 1984 and 2025, the review synthesizes insights from Upper Echelons Theory, behavioral finance, and corporate governance. The review uses PRISMA guidelines and thematic coding via NVivo to identify four dominant clusters: CEO psychological traits, risk-taking mechanisms, moderating governance variables, and valuation metrics. The findings suggest that CEO overconfidence is a critical driver of strategic risk-taking, and it can have either a positive or negative impact on firm value, depending on moderating factors such as age, gender, board independence, and digital maturity. These effects are especially pronounced in digital banking, where rapid technological adoption, data-driven decision-making, and an evolving regulatory framework exist. The study identifies research gaps related to geographic bias, methodological limitations, and insufficient integration of emerging themes such as AI governance and platform-based value. The review concludes with actionable implications for boards, investors, and regulators, including the need for behavioral assessments in CEO selection, risk-adjusted performance metrics, and early-warning systems grounded in executive psychology.

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Keywords:

Behavioral Finance, CEO Characteristics, CEO Overconfidence, Digital Banking, Firm Value, Risk-Taking, Systematic Review, Upper Echelons Theory.