When a Master Dies: Speculation and Asset Float

Optimal financial crises

Julien Penasse, Luc Renneboog, José A Scheinkman and Stijn Van Nieuwerburgh

The Review of Financial Studies, 2021, vol. 34, issue 8, 3840-3879

Abstract: 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%).

Keywords: G12; P34; Z11; D44 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Working Paper: When a master dies: Speculation and asset float (2021)
Working Paper: When a Master Dies: Speculation and Asset Float (2020)
Working Paper: When a Master Dies: Speculation and Asset Float (2020)
Working Paper: When a Master Dies: Speculation and Asset Float (2020)
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