Horizon analysis of art investments: Evidence from the Chinese market

Park, Heungju; Ju, Lan; Liang, Ting; Tu, Zhiyong

doi:10.1016/j.pacfin.2016.11.001

Cited by 12 publications

(10 citation statements)

References 15 publications

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“…With the highest auction turnover, the FCPC, OPCA, and FCCMC constitute the most representative art category for the Chinese market (Park et al, 2017). Moreover, Shi et al (2018) also note that the FCPC constitutes the most important segment of the entire Chinese art market.…”

Section: Datamentioning

confidence: 98%

“…Shi et al (2017) examine whether investors exhibited a home bias in the domestic art market and the result shows that artworks auctioned in the artist's home cities tend to have higher prices. Park et al (2017) analyze art investments with different investment horizons in the Chinese art market and find that both art returns and volatilities increase with the investment horizons. Wang (2017) analyzes the structure of the hedonic characteristics of 12,701 Chinese oil paintings and the finding shows that highly priced Chinese oil paintings have both higher expected returns and less risk than those that are priced lower.…”

Section: Literature Reviewmentioning

confidence: 99%

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Testing for Bubbles in the Chinese Art Market

Qin

et al. 2020

SAGE Open

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This article detects the existence of bubbles in the Chinese art market and investigates when the bubbles originate and crash. We utilize the generalized supremum augmented Dickey–Fuller (ADF) test to detect explosive behavior in the Chinese art market. The empirical results indicate that there are two bubbles in the Chinese art market that happened in the periods from 2004 to 2005 and 2010 to 2011. The main reasons are the financialization of artworks, the speculation of investment institution, and the fluctuation of macroeconomics in China. Our findings are in agreement with the bubble model improved by Gürkaynak considering that asset price can be decomposed to bubbles and fundamental parts. Therefore, to favor the Chinese art market price stabilization, the regulators from this market should identify bubbles to notice their evolutions. The authorities should also manage the expectations of the public and reduce speculative behavior.

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Section: Datamentioning

confidence: 98%

Section: Literature Reviewmentioning

confidence: 99%

Testing for Bubbles in the Chinese Art Market

Qin

et al. 2020

SAGE Open

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show abstract

“…Art investors focus on gaining value because of increasing available information. They favour masterpieces as well as known artworks (Park et al 2017). This implies that the return to investment in 'Fine Art' is a function of volatility (uncertainty), available information and the investment time horizon.…”

Section: Applying Tobin To Highlight the Relationship Between Uncertainty And Risk Within The 'Fine Art' Marketmentioning

confidence: 99%