Review of Financial Studies Vol. 34 No. 8 2021
When a Master Dies: Speculation and Asset Float
open access
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%).
- DOI
- 10.1093/rfs/hhab006
- Volume
- 34
- Issue
- 8
- Pages
- 3840-3879
- Language
- en
- Sources
- crossref bibtex:phds-export.bib openalex