Art as an Investment and the Underperformance of Masterpieces
Jiangping Mei,Michael J. Moses +1 more
TLDR
In this paper, the authors construct a new data set of repeated sales of artworks and estimate an annual index of art prices for the period 1875-2000, and find that art outperforms fixed income securities as an investment, though it significantly underperforms stocks in the US.Abstract:
This paper constructs a new data set of repeated sales of artworks and estimates an annual index of art prices for the period 1875-2000. Contrary to earlier studies, we find art outperforms fixed income securities as an investment, though it significantly under-performs stocks in the US. Art is also found to have lower volatility and lower correlation with other assets, making it more attractive for portfolio diversification than discovered in earlier research. There is strong evidence of underperformance of masterpieces, meaning expensive paintings tend to underperform the art market index. The evidence is mixed on whether the "law of one price" holds in the New York auction market.read more
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Entertainment Industry Economics: A Guide for Financial Analysis
TL;DR: In this paper, the authors present a review of media-dependent entertainment, focusing on the following: 1. Media-Dependent Entertainment: 2. Movie macroeconomics 3. Making and marketing movies 4. Financial accounting in movies and television 5. Music 6. Broadcasting 7. Cable 8. Publishing and New Media 9. Live Entertainment: 10. Gaming and wagering 11. Sports 12. Performing arts and culture 13. Amusement/theme parks 14. Epilogue.
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Buying Beauty: On Prices and Returns in the Art Market
TL;DR: Xiong et al. as discussed by the authors applied a hedonic regression analysis to a new data set of more than one million auction transactions of paintings and works on paper, and concluded that art has appreciated in value by a moderate 3.97% per year, in real U.S. dollar terms, between 1957 and 2007.
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Anchoring Effects: Evidence from Art Auctions
Alan Beggs,Kathryn Graddy +1 more
TL;DR: In this paper, the authors develop a hedonic prediction of price for both the current sale and the previous sale, based on observable characteristics of each painting and an index of overall prices.
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Art as an Investment and Conspicuous Consumption Good
TL;DR: In this article, the authors show that the risk premium of a portfolio of artworks is low compared to other risky assets and exploit this insight to explain why art is also a consumption good.
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Art and money
TL;DR: In this paper, the authors investigated the impact of equity markets and top incomes on art prices and found that both same-year and lagged equity market returns have a significant impact on the price level in the art market.
References
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Large sample properties of generalized method of moments estimators
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Does the Stock Market Overreact
TL;DR: In this article, a study of market efficiency investigates whether people tend to "overreact" to unexpected and dramatic news events and whether such behavior affects stock prices, based on CRSP monthly return data, is consistent with the overreaction hypothesis.
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The arbitrage theory of capital asset pricing
TL;DR: Ebsco as mentioned in this paper examines the arbitrage model of capital asset pricing as an alternative to the mean variance pricing model introduced by Sharpe, Lintner and Treynor.
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Dividend yields and expected stock returns
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this article, the power of dividend yields to forecast stock returns, measured by regression R2, increases with the return horizon, and the authors offer a two-part explanation: high autocorrelation causes the variance of expected returns to grow faster than the return-horizon.
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Size and Book-to-Market Factors in Earnings and Returns
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this paper, the authors study whether the behavior of stock prices, in relation to size and book-tomarket-equity (BE/ME), reflects the behaviour of earnings and find no link between BE/ME factors in earnings and returns.