Managing Arts in Times of Pandemics and Beyond

Abstract

The work seeks to provide a management perspective about museums, theatres, and related organizations (like auction houses) from the angles of philosophy, policy, organizational design, economics, and technology. The work seeks to examine the unprecedented crisis engendered by the COVID-19 pandemic on arts organizations across the world and the management strategies adopted to handle the pandemic. The work delves into the immense significance of digital technologies such as streaming technologies, algorithm-driven sales, and information storing digital ledgers like blockchains in guiding the fortunes of the arts organization both during and beyond the phase of pandemics. The key message of the book is that art organizations will not be the same even after the COVID-19 pandemic. Arts organizations that have for long relied on the real world of exhibitions and performances will be tempted to straddle in both the real and virtual models. Their revenue earnings models will also be more diversified than at present, so would their reach to their customers. Further the advent of Non-Fungible Tokens (NFTs) based on blockchain platform Ethereum, it is argued, will turn democratize the world of creation, collection, and consumption thus nudging extant institutions to change their prevalent methods of doing business in arts works.

Do Damodaran's Multiples Value a Company Accurately? Evidence from Germany

“…Variables of multiples are determined as follows: EV is calculated on the same basis as proposed by Damodaran (2022), adding the book value of debt to the market capitalisation. It could be argued that EV should be adjusted for excess cash, but according to Lie and Lie (2002), adjusting for cash levels would not improve accuracy.…”

“…This research is limited to European companies and data provided by Damodaran (2022) and focuses its concern on the European market and more specifically on German publicly traded companies listed on the following stock exchanges: Börse München, Börse Stuttgart, Deutsche Börse AG, Börse Düsseldorf, Hamburg Stock Exchange, Hannover Stock Exchange, and Frankfurt Stock Exchange. German listed companies were chosen because to the best of my knowledge German market is one of the most developed in Europe (Schreiner and Spremann, 2007;Chullen et al, 2015).…”

“…German listed companies were chosen because to the best of my knowledge German market is one of the most developed in Europe (Schreiner and Spremann, 2007;Chullen et al, 2015). All the variables were extracted from an S&P Capital IQ ( 2022) database where all necessary fundamental drivers are available and secondly from the Damodaran's (2022) website, where he collects all the market multiples data. Descriptive statistics of the sample are reported in Tab.…”

“…The challenge in selecting the companies in the sample was to identify industries containing at least five entities; this way, the whole market multiples analysis is free from bias. In addition, only those industries listed by Damodaran (2022) had to be included in the sample. The next step was to keep in the sample only companies that have shown positive earnings for at least three years for the company to meet the going concern assumption.…”

“…Every year, Damodaran (2022) publishes an analysis of industry market multiples on his website to be used by countless financial and investment analysts, academics, or the general public (e.g. Mařík et al, 2018).…”