Errors and misbehaviors in banking and finance: a systematic literature review and an integrative framework

Over recent decades, errors and misbehaviors (E&M) within the banking and finance (B&F) sector have garnered attention from both scholars and practitioners. However, existing knowledge in this area remains fragmented. This paper aims to provide a systematization of existing findings and to develop an integrative framework. We conducted a systematic literature review (SLR) to identify relevant works on this subject (n = 57), with the aim of constructing an integrative framework that delineates potential antecedents and consequences of E&M while also identifying avenues for future research. Research on E&M in the B&F context can be categorized into several strands: individual and/or organizational behaviors, insider trading, oversight by authorities, the influence of national culture, the repercussions for banks’ reputations, and the relevance of digitalization. Our findings underscore the necessity of broadening research methodologies, expanding investigations into management procedures and control mechanisms, delving into the interaction effects among antecedents, and deepening our understanding of the role played by environmental factors.