When a Master Dies: Speculation and Asset Float

• 成果类型: Article
• 署名作者: Penasse, Julien; Renneboog, Luc; Scheinkman, Jose A.
• 署名单位: University of Luxembourg; Tilburg University; Columbia University; Princeton University; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhab006
• 发表日期: 2021
• 页码: 3840
• 关键词: ART; prices; returns; MARKET

摘要

An artist's death constitutes a negative shock to his future production; death permanently decreases the artist's float. We use this shock to test predictions of speculative trading models with short-selling constraints. As predicted in our model, we find that an artist's premature death leads to a permanent increase in prices and turnover; this effect being larger for more famous artists. We document that premature death increases prices (by 54.7%) and secondary market volume (by 63.2%).