Determinants of art prices and performance by movements: Long-run evidence from an emerging market

Garay, Urbi

doi:10.1016/j.jbusres.2019.03.057

Cited by 11 publications

(17 citation statements)

References 29 publications

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“…This price premium enjoyed by the Group denotes the importance of the Group in shaping and providing global recognition to Indian art. With regard to returns on investment in paintings, our observationoverall returns on art are generally lower than other assetsis consistent with previous studies (Campbell, 2008;Renneboog and Spaenjers, 2013;Fedderke and Li, 2020;Garay, 2021). However, there exist sub-sections and periods in the market that have provided substantially higher returns than all other assets for the duration of the study (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018), e.g.…”

Section: Discussionsupporting

confidence: 92%

“…We notice that the location and brand value of the auction matter. In line with previous studies (Higgs and Worthington, 2005;Renneboog and Spaenjers, 2013;Garay, 2021), our study also indicates that paintings auctioned by globally recognized auction houses, such as Christie's and Sotheby's, are valued higher. Christie's and Sotheby's command a premium of 68 and 78% over the prices received at the reference auction house -Saffronart.…”

Section: The Economics Of Indian Paintingssupporting

confidence: 91%

“…In addition, paintings sold in Mumbai (reference location) are sold for a higher price compared to all other locations. The price premium for location agrees with the view that the prices of artworks are generally the highest in their home market (Renneboog and Spaenjers, 2013;Garay, 2021).…”

Section: The Economics Of Indian Paintingssupporting

confidence: 81%

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The economics of art: price determinants and returns on investment in Indian paintings

Gurjar

Ananthakumar

2023

IJSE

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PurposeThe valuation of artworks is challenging since their value encompasses economic, social and cultural values. This study examines two specific questions about the economics of Indian art market: first, the determinants of the price of paintings by Indian artists and second, the risk and return characteristics of investment in Indian paintings. The authors also analyze the role of local context for both questions.Design/methodology/approachThis study uses 8,865 paintings that are auctioned between January, 2000 and June, 2018. A generalized additive model (GAM) is employed to identify the determinants of auction prices and estimate art market price index.FindingsThe results indicate that the price of paintings in the Indian market is impacted by both global and local factors. Consistent with the previous research, this study finds that provenance, literature, living status of an artist, artist reputation, auction house, location and gender determine prices. However, the unique behavior of artwork medium and art movement affiliation in the Indian art market signifies the importance of local context in the valuation of artworks. An analysis of the second aspect of the study, i.e. risk and return characteristics of art investment, suggests that though overall art market returns are not lucrative, there are sub-sections in the market that outperform stocks and other assets. Further, the Indian art market shows a weak or negative correlation with other assets, thus making it a good candidate for a diversified portfolio. One of the important findings of this study is that artworks created by artists associated with the Bombay Progressive Artists' Group (PAG) command a significant price premium over all other artworks. Moreover, the average return on investment in paintings by artists affiliated to the Bombay PAG is not only significantly better than other art movements but also higher than all other art assets.Originality/valueThis study contributes to the growing literature on the economics of art market by providing a comprehensive analysis of the economics of Indian paintings. This research highlights the importance of local factors in price determination and on the risk and return characteristics of art investment. To the best of the authors’ knowledge, it is the most comprehensive study of the economics of Indian painting market and the first study to identify the relationship between Indian art movements and prices of paintings and returns on investment in paintings.

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Section: Discussionsupporting

confidence: 92%

Section: The Economics Of Indian Paintingssupporting

confidence: 91%

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The economics of art: price determinants and returns on investment in Indian paintings

Gurjar

Ananthakumar

2023

IJSE

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“…For art price index, estimated on broad sample, the average return is about 1% above inflation, which substantially lower, than for some fast growing fine art markets such as Russia, India and China [24]. For more details on art price returns in different countries see [25].…”

Section: Discussionmentioning

confidence: 99%

Hedonic Pricing on the Fine Art Market

2020

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In conditions of the stock market instability the art assets could be considered as an attractive investment. The fine art market is very heterogeneous which is featured by uniqueness of the goods, specific costs and risks, various peculiarities of functioning, different effects and, hence, needs special treatment. However, due to the diversity of the fine art market’s goods and the absence of the systematic information about the sales, researchers do not come to the same opinion about the merits of the art assets conducting studies on single segments of the market. We make an attempt to investigate attractiveness of the fine art market for investors. Extensive data was collected to obtain a complete pattern of the market analyzing it within different segments. We use the Heckman model in order to estimate the art asset return and find out the most influential factors of art price dynamics. Based on the estimates obtained we construct monthly art price index and compare it with S&P500 benchmark.

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“…First, the existing research focuses on the performance of particular forms of different types of alternative investments. For example, Aragon et al (2021) studied the performance of hedge funds; De Fontenay (2019) studied the performance of private equity; and Garay (2021) studied the performance of investments in art work. We suggest empirical research with practitioners’ perspectives focusing on comparative performance analysis of different forms of alternative investments.…”

Section: Research Gaps and Directions For Future Researchmentioning

confidence: 99%

The potential of alternative investments as an asset class: a thematic and bibliometric review

Mundi

Kumar

2022

QRFM

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Purpose This paper aims to review, systematize and integrate existing research on alternative investments. This study conducts performance analysis comprising production timeline, country-wise contributions, analysis of sources, affiliations, the geography of authors and citations of studies on alternative investments. Design/methodology/approach This study adopts a thematic and bibliometric analysis methodology on 570 papers identified from mainstream literature on alternative investments. This study provides an analysis of science mapping, including co-citation analysis, bibliometric coupling, word analysis and trending topics on alternative investments. In addition, the study presents thematic analysis by classifying existing studies into nine themes. Findings Alternative investments provide diversification benefits and play a critical role in portfolio construction, and the research on alternative investments has gained momentum in recent times. This study finds that hedge funds, private equity, artwork, collectibles, commodities, fine wine and venture capital have remained prominent themes in the field. Investments in cryptocurrencies are an emerging area in the research on alternative investments. Research limitations/implications This study limits itself to the papers published in the area of finance and economics listed on the Scopus database. Originality/value This study provides quantitative bibliometric analysis and thematic analysis of the extant literature on alternative investments and identifies the areas that could be developed to advance research on alternative investments.

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Determinants of art prices and performance by movements: Long-run evidence from an emerging market

Cited by 11 publications

References 29 publications

The economics of art: price determinants and returns on investment in Indian paintings

The economics of art: price determinants and returns on investment in Indian paintings

Hedonic Pricing on the Fine Art Market

The potential of alternative investments as an asset class: a thematic and bibliometric review

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