Music royalty shares: Investment or fandom?

Byungwan Koh, James L. Park and Jaehwan Kim

Economics Letters, 2025, vol. 255, issue C

Abstract: This study examines how music royalty shares on Musicow, a Korean trading platform, are priced during an exogenous regulatory shock classifying these assets as securities. Using transaction data, we show that the shares linked to popular artists are associated with a valuation premium. However, these shares decrease more sharply following the shock, suggesting that economic fundamentals supersede fan-driven sentiment. Our findings highlight that, even in markets for cultural goods, investor behavior aligns closely with rational valuation in the context of external risk.

Keywords: Music royalties; Alternative investments; Fractional investment; Event Study; Behavioral Finance (search for similar items in EconPapers)
JEL-codes: G12 G14 L82 Z11 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003635

DOI: 10.1016/j.econlet.2025.112526

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