Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Emotional economic man: Calculation and anxiety in fund management

Taffler, Richard J., Spence, Crawford and Eshraghi, Arman ORCID: 2017. Emotional economic man: Calculation and anxiety in fund management. Accounting, Organizations and Society 61 , pp. 53-67. 10.1016/j.aos.2017.07.003

Full text not available from this repository.


Dominant theorisations of investment decision making remain firmly wedded to the notion of economic rationality, either as a postulate of how financial actors actually behave or as a normative ideal to which financial actors should strive. However, such frameworks have been developed largely without engaging financial market participants themselves. Based on 51 in-depth interviews with fund managers in various global financial centres, this article highlights a number of features of investment decision making that mainstream finance and behavioural approaches both fail adequately to describe. Drawing on psychoanalytic theory, it is shown how the inherent uncertainty of the investment process engenders a state of endemic anxiety among fund managers. This anxiety is managed via a range of mental defences, both conscious and unconscious. The importance fund managers place on meeting and putting trust in company management to ‘perform’ for them can equally be viewed as a means of alleviating anxiety rather than having any direct economic purpose. This article, furthermore, brings to light the crucial role that calculative techniques play in dealing with anxiety. Rather than constituting a means of restoring rationality or correcting cognitive biases, calculation can actually reinforce ego defences while simultaneously perpetuating the myth of homo economicus. Fund managers can be characterised as ‘doing’ but ‘not doing’ and ‘knowing’ but ‘choosing not to know’ and have to manage not only their clients' funds, but their own personal anxiety as well.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Elsevier
ISSN: 0361-3682
Date of Acceptance: 14 July 2017
Last Modified: 24 Oct 2022 07:39

Citation Data

Cited 33 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item Edit Item