Empirical Analysis of Investments on the Fine art Market

In conditions of the stock market instability the art assets could be considered as an attractive investment. However, due to the heterogeneity of the fine art market's goods and the absence of the systematic information about the sales, researchers do not come to the same opinion about the merits of the art assets conducting studies on single segments of the market. We make an attempt to investigate attractiveness of the fine art market for investors. Extensive data was collected to obtain a complete pattern of the market analyzing it within different segments. We construct hedonic art price indexes using parametric and semi-parametric methodologies, assess the risk via Capital Asset Pricing Model and analyze the speed of sale from the investing point of view. The artworks in the high price sector are the potentially most profitable assets on the market, but the investments in paintings are associated with high risk. According to the survival model, next sale of the bought-in painting will come faster if it is mentioned in the special literature, exhibited, its author of the Latin nationality is popular and the region of sale is Europe.