Interpreting Uncertainty: Lived Experiences of Investment Managers in Navigating Market Volatility and Ethical Dilemmas

Abstract

Investment decision-making under uncertainty is a critical issue in corporate finance. It involves the intersection of psychological, ethical, and strategic factors. While prior research has focused primarily on behavioral models and quantitative risk analysis, there is limited understanding of how investment managers personally experience and interpret systemic market uncertainty. This study addresses the gap by asking: How do investment managers make sense of their decision-making during market volatility and systemic risk? Using an interpretative phenomenological approach, this study explores the lived experiences of nine senior investment managers through in-depth, semi-structured interviews. The data were examined using interpretative phenomenological analysis (IPA), revealing three central themes: burden of responsibility, intuitive judgment, and ethical dissonance. These findings demonstrate that financial decision-making is not solely rational. It is also shaped by emotional labor and personal meaning. The phenomenological approach uncovered nuanced insights often missed in traditional methods. This study contributes to a more holistic view of professional decision-making under uncertainty. It also suggests the need for human-centered practices in financial institutions. The results have practical implications, highlighting the importance of psychological and ethical support in financial training and policy.