Abstract

This paper explores the discursive construction of emotion concept in the research literature on financial decision making. The links between emotions and investment decisions are investigated in terms of: (a) causal interdependencies of emotional experiences on investors’ performances (Landberg, 2003; Shiv & Fedorikhin, 1999); and (b) the effects of aggregated nets of collectively shared social moods on financial decisions under conditions of risk and uncertainty (Nofsinger, 2005; Prechter, 2001). However, it is also important to note that financial analysis involves not only acquiring and “digesting” relevant information, but investors are enmeshed in the complex webs of human relations with other people (Knights, Murray, & Willmott, 1993). If it is investors who move the stock prices rather than investment information (Appleman, 1972), then investing is essentially a social activity (Shiller, 2003) which is constituted through discussions about market trends, companies’ reports, or researching more efficient ways of conducting fundamental analysis with colleagues, clients and other investors. Therefore, this paper calls to examine the concept of emotion and social aspects of emotional experiences as they are constructed, maintained and changed in interactions. This approach allows us to move beyond the view of emotion as a variable or object of internal control, but helps unearth the constitutive discursive processes that lead to (a) the dichotomous distinction between emotion and reason, and (b) devaluing one knowledge claim over the other.