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Article
Author(s)
Konstanze Senge
Full-Text PDF XML 673 Views
DOI:10.17265/1548-6591/2020.05.003
Affiliation(s)
Institute of Sociology, Chair for Economic and Organizational Sociology, Martin-Luther-University Halle-Wittenberg, Halle (Saale), Germany
ABSTRACT
The article discusses
the role of emotions in investment decision-making processes on the financial markets.
It will be shown that emotions, in conditions of fundamental
uncertainty, may be a supplement to cognitive knowledge. More specifically, it will
be shown that under conditions of fundamental uncertainty, emotions of confidence
or “good feeling” about anticipated future states will be achieved to serve as a
bridge to overcome uncertainty. The findings presented in this article also show
that financial investors legitimate their decisions by referring to their emotions.
Financial investors claim that emotions direct decisions when the decision-making
processes cannot be apprehended by cognition alone. The article also shows that
in decisions of fundamental uncertainty cognitive and emotional decision logic complement
each other. In order to come to these conclusions data were taken from 17 qualitative
in-depth interviews with professional investors from major German banks.
KEYWORDS
economic sociology, sociology of emotions, decision making, uncertainty, emotions, financial markets
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