Study On The Holding Period Effect Of The Return On Investment Of Artwork

In recent years,traditional investment methods represented by stocks and real estate markets have been constantly receiving economic and newly sprouted things.Unlike traditional investment methods,investment in artworks has emerged from the tide of economic development and gradually captured the attention of investors.On the one hand,China has a long story of the history and the culture,today,there is a profound artistic heritage,a huge number of collections,and makes a great potential for the development of the art market.On the other hand,the art investment has a relatively low risk of investment,rapid appreciation,high-quality economic returns and elegant style,making art investment has the insurmountable advantages of the other investment tools.Therefore,art investment has grown rapidly in China,which has become the new favorite of the investment mode in our country.It not only attracts more and more investors into this field,but also becomes a hot issue for scholars to study.Based on this background,the related research on the return of investment in Chinese art is not only the requirement of academic development but also the demand of the market.This article takes the holding period effect of the return on investment of artwork as the research content.First of all,this article collates the domestic and foreign scholars' research on art investment,begins this study on the basis of a full survey and understanding of the achievements of previous scholars' research;Secondly,this article constructs the theoretical basis of art investment decision-making which is to start with the theory of behavioral finance,market sentiment,adaptive expectations and time cost.Based on that,this article discusses the characteristics of the art investment market,under the perspective of investment behavior,expectations and under the perspective of time costs,this article analyzes the holding period decision-making and the possible impact of the holding period on the return;Thirdly,this article uses threshold autoregressive mode to conduct an empirical study of the holding period effect of the return rate on the art investment market,examines the effects of the holding period,macroeconomic fluctuations and policy changes,and the attributes of artworks on the holding period effect,analyzes the holding period effect of the return on investment of artwork and the changing trend of it,comprehensively examines other factors that will influence the return on investment of artwork.The results show that in order to obtain high returns on investment in art,the selection of the length of the holding period should be inclined to the mid-long term.It is necessary to comprehensively examine economic fluctuations and related policy changes,choosing artworks that have been produced for a long time.Moreover,the valuation of the artwork,the number of recordings and other factors have an impact on the return on investment in artworks.When investing in artworks,various aspects of artworks should be taken into consideration.Finally,this article puts forward some countermeasures for improving the holding period effect of the return on investment of artwork.