A note on financial risk, return and asset pricing in Australian modern and contemporary art

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Title A note on financial risk, return and asset pricing in Australian modern and contemporary art
Author Worthington, Andrew Charles; Higgs, Helen
Journal Name Journal of Cultural Economics
Editor Guenther Schulze
Year Published 2006
Place of publication US
Publisher Springer
Abstract In this note, 30,227 paintings by fifty well-known modern and contemporary Australian artists sold at auction over the period 1973-2003 are used to construct a hedonic price index. The attributes included in the hedonic regression model include the name, age and living status of the artist, the number of works sold, the size and medium of the painting, and the auction house, month and year in which the painting was sold. The results indicate that returns on Australian modern and contemporary art averaged nearly five percent over the period with a standard deviation of sixteen percent. The results also show that a ten percent increase in the Australian stock market is associated with a 3.4 percent increase in the art market. Generally, artworks by artists deceased at the time of auction, larger works, works executed in oils, and those auctioned by Sotheby’s or Christie’s in July or August are associated with higher prices.
Peer Reviewed Yes
Published Yes
Alternative URI http://dx.doi.org/10.1007/s10824-005-9000-5
Copyright Statement Copyright 2006 Springer-Verlag. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher.
Volume 30
Issue Number 1
Edition 2006
Page from 73
Page to 84
ISSN 0885-2545
Date Accessioned 2006-07-25
Language en_US
Research Centre Griffith Asia Institute
Faculty Griffith Business School
Subject PRE2009-Econometric and Statistical Methods
URI http://hdl.handle.net/10072/14008
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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