The Chinese art market has become one of the main auction markets in terms of sales. The current research is one of the few studies of the Chinese art market based on Chinese paintings. Regarding the second question, this research further examines whether the masterpiece effect and the auction house effect in the Chinese art market.
Chinese Contemporary Art Market and Literature Review 2.1 History of Chinese Contemporary Art Market. During this phase, the Chinese art market has emerged in the world art market, which has fundamentally changed the structure of the international art trade. The initial incubation of the Chinese art market was from the end of the cultural revolution (1978) to 1992.
The Chinese art market has emerged on the global art market, which has fundamentally changed the structure of the international art trade. The rapid growth of the Chinese art market is primarily due to support from the Chinese government and financial institutions.
Contribution to the current literature
Research on the auction house effect on the new art market is nascent but growing much faster. In recent research, Shi et al. 2017) analyzed 108,986 pieces of transaction data in the Chinese art market from and confirmed that investors had the high premium when the artwork was sold in the artist's hometown instead of elsewhere. In the follow-up study, Park et al. 2017) suggested that investors tend to do better when the investor bought art in another art market and then sold it in Beijing.
Additionally, research on the auction house effect includes but is not limited to the art market. Vosilov (2015) collected 65,473 sculptural works from 1985 to 2013 and the result showed that sculptures sold in the artist's home country had higher returns than those sold abroad.
Data and Methodology
- Data collection
- Repeat sales data collection
- Measure of hedonic attributes
- Characteristics of the artist
- Characteristics of an artwork
- Characteristics of sales
- Estimation Framework
- Hedonic regression
- Auction house effect
The survey further identifies the information for the characteristics of the artists, such as the name of the artist and the living status of the artist (denoted as deceased). This study collected the TOP 503 artists published by the Report of the Chinese Art Auction Market. Consistent with the literature (Taylor & Coleman, 2011), this study assigns a dummy variable equal to 1 if an artist is dead at the time of the auction, 0 otherwise.
This study assigns a dummy variable equal to 1 if the artwork with the record of the exhibition, otherwise it is 0. Current research first considers this variable related to the characteristics of the works and assumes that the artwork with the celebrity adds the value of the authenticity of the work and tend to fetch high prices. Similar to the case of the year, the month is expressed as the month in which the artwork was sold. 2018), Garay (2019) and Fedderke and Li (2019), the current research assigns a dummy variable equal to 1 if the artwork was sold in that month, otherwise 0 if the artwork was sold in another month.
The current research uses hedonic regression to construct the price index and calculate the return on investment of the Chinese art market. 23. in the price of a work of art), this regression captures the characteristics of the work of art to determine the price of the work of art.
Empirical Results and Discussion
- Summary statistics .1 Hedonic data sample
- Repeat sales datasample
- Hedonic regression
- The baseline hedonic regression
- Dynamics change of Price determinants of hedonic characteristics in the long-run movements
- Art price indices and investment return of Chinese art
- Masterpiece effect
- Auction house effect
- Robustness checks
In the Artist' movement, the works of art from the modern era are the mainstream of the Chinese art market. Think of the montage group, the artwork mounted in vertical drawing consists of the mainstream in Chinese art. After the downturn in the art market, the Chinese art market adjusted its construction, emphasizing 'the search for quality' instead of 'the search for speed' (see 2.1, the history of the contemporary Chinese art market).
In the Investment Horizon group, the holding time classification criteria follow Park et al. The documentation registered in established sales catalogs can also guarantee the authenticity of the work of art (McAndrew, 2010). The characteristics of the artists and works are significantly influenced by the changes in the techniques and traditions of the works.
Furthermore, as a publicly trusted institution, the exhibition provides reliable evidence about the authenticity of the work of art. These financial institutions created high transactions in Chinese art, accelerating the prosperity of the Chinese art market (TEFAF). Similar to recent research, Huang and Li (2019) illustrated that the arithmetic average of the annual return on Chinese art is 8.96 percent. .
Panel C of Table 8 reports the results of the masterpiece effect using repeated sales regression. The current research identifies the circulation of art between different markets according to point-of-sale data in repeat sales to investigate the auction house effect in the Chinese art market. Panel A in Table 9 shows the result of the auction house effect between the Chinese art market and the foreign art market.
Panel C of Table 9 shows the outcome of the auction house effect between the onshore and offshore art markets. The study further provides results of the return on investment of Chinese art by using the regression of repeat sales. The return from the repeat sales sample is higher than that of the total sample.
Conclusion
Regarding the category of investment horizon, the result shows that the semi-annual real rate of return in short- and medium-horizon investors is 11.188 percent and 12.556 percent, higher than that of long-horizon investors, with 7.725 percent, and that their volatility is similar. The study also considered the price determinants of Chinese art, and the results showed that consistent with other hedonic pricing models for art markets, capturing the artists'. Retrieved October 28, 2019, from https://www.artprice.com/artprice-reports/the-art-market-in-2017/characteristics-of-the-chinese-art-market-in-2017-art-market- monitor -of-artron-amma.
Within the asset class horizon, holding periods of one to two semi-annually are classified as short horizons (Short), those of three to six semi-annually are categorized as medium horizons (Medium), and those longer than six semi-annually. are categorized as the long horizon (Long). For each variable, Table 4 reports the estimated hedonic coefficient, the standard error (SE), T-value, P-value and the price impact (i.e. the exponent of the estimated coefficient minus one). For each variable, Table 5 reports the coefficient, standard error, t-value, P-value, and the price impact (i.e., the exponent of the estimated coefficient minus one).
Based on the coefficients of the time dummies and the estimated variance of residuals in each period, this study constructed both an unadjusted art price index and a price index that corrects for log-transformation bias, respectively. Panel B of Table 9 shows the result of the auction house effect between the state auction house and “not”. Deceased A dummy variable equals 1 if an artist has died at the time of the auction, otherwise it is 0;.
Signed A dummy variable equal to 1 if artwork with the artist's signature, otherwise 0;. The advantage of the calligraphy sheets is convenient to carry; Thus it was favored by literati. The popularity of painting with poems has contributed to the development of the album of paintings.
The advantages of this mounting method are to preserve and extend the life of the calligraphy and painting items. A montage style of calligraphy and painting works, is also known as the hanging scroll (of Chinese painting or calligraphy). Articles entrusted by administrative and public institutions; Improper material from the Postal and Telecommunications Department;.
