Art investment in South Africa: portfolio diversification and art market efficiency
- Botha, Ferdi, Snowball, Jeanette D, Scott, Brett
- Authors: Botha, Ferdi , Snowball, Jeanette D , Scott, Brett
- Date: 2016
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/64794 , vital:28601 , http://www.dx.doi.org/10.17159/2222-3436/2016/v19n3a4
- Description: Art has been suggested as a good way to diversify investment portfolios during times of financial uncertainty. The argument is that art exhibits different risk and return characteristics to conventional investments in other asset classes. The new Citadel art price index offered the opportunity to test this theory in the South African context. Moreover, this paper tests whether art prices are efficient. The Citadel index uses the hedonic regression method with observations drawn from the top 100, 50 and 20 artists by sales volume, giving approximately 29 503 total auction observations. The Index consists of quarterly data from the period 2000Q1 to 2013Q3. A vector autoregression of the art price index, Johannesburg stock exchange all-share index, house price index, and South African government bond index were used. Results show that, when there are increased returns on the stock market in a preceding period and wealth increases, there is a change in the Citadel art price index in the same direction. No significant difference was found between the house price index and the art price index, or between the art and government bond price indices. The art market is also found to be inefficient, thereby exacerbating the risk of investing in art. Overall, the South African art market does not offer the opportunity to diversify portfolios dominated by either property, bonds, or shares.
- Full Text:
- Date Issued: 2016
- Authors: Botha, Ferdi , Snowball, Jeanette D , Scott, Brett
- Date: 2016
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/64794 , vital:28601 , http://www.dx.doi.org/10.17159/2222-3436/2016/v19n3a4
- Description: Art has been suggested as a good way to diversify investment portfolios during times of financial uncertainty. The argument is that art exhibits different risk and return characteristics to conventional investments in other asset classes. The new Citadel art price index offered the opportunity to test this theory in the South African context. Moreover, this paper tests whether art prices are efficient. The Citadel index uses the hedonic regression method with observations drawn from the top 100, 50 and 20 artists by sales volume, giving approximately 29 503 total auction observations. The Index consists of quarterly data from the period 2000Q1 to 2013Q3. A vector autoregression of the art price index, Johannesburg stock exchange all-share index, house price index, and South African government bond index were used. Results show that, when there are increased returns on the stock market in a preceding period and wealth increases, there is a change in the Citadel art price index in the same direction. No significant difference was found between the house price index and the art price index, or between the art and government bond price indices. The art market is also found to be inefficient, thereby exacerbating the risk of investing in art. Overall, the South African art market does not offer the opportunity to diversify portfolios dominated by either property, bonds, or shares.
- Full Text:
- Date Issued: 2016
Sport consumption patterns in the Eastern Cape: cricket spectators as sporting univores or omnivores
- Brock, Kelcey, Fraser, Gavin C G, Botha, Ferdi
- Authors: Brock, Kelcey , Fraser, Gavin C G , Botha, Ferdi
- Date: 2016
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/69362 , vital:29508 , https://doi.org/10.4102/jef.v9i3.64
- Description: Since its inception, consumption behaviour theory has developed to account for the important social aspects that underpin or at least to some extent explain consumer behaviour. Empirical studies on consumption behaviour of cultural activities, entertainment and sport have used Bourdieu’s (1984) omnivore/univore theory to investigate consumption of leisure activities. The aim of this study is to investigate whether South African cricket spectators are sporting omnivores or univores. The study was conducted among cricket spectators in the Eastern Cape at four limited overs cricket matches in the 2012/2013 cricket season. The results indicate that consumption behaviour of sport predominantly differs on the grounds of education and race. This suggests that there are aspects of social connotations underpinning sports consumption behaviour within South Africa.
- Full Text:
- Date Issued: 2016
Sport consumption patterns in the Eastern Cape: cricket spectators as sporting univores or omnivores
- Authors: Brock, Kelcey , Fraser, Gavin C G , Botha, Ferdi
- Date: 2016
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/69362 , vital:29508 , https://doi.org/10.4102/jef.v9i3.64
- Description: Since its inception, consumption behaviour theory has developed to account for the important social aspects that underpin or at least to some extent explain consumer behaviour. Empirical studies on consumption behaviour of cultural activities, entertainment and sport have used Bourdieu’s (1984) omnivore/univore theory to investigate consumption of leisure activities. The aim of this study is to investigate whether South African cricket spectators are sporting omnivores or univores. The study was conducted among cricket spectators in the Eastern Cape at four limited overs cricket matches in the 2012/2013 cricket season. The results indicate that consumption behaviour of sport predominantly differs on the grounds of education and race. This suggests that there are aspects of social connotations underpinning sports consumption behaviour within South Africa.
- Full Text:
- Date Issued: 2016
The good African society index
- Authors: Botha, Ferdi
- Date: 2016
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/396194 , vital:69157 , xlink:href="https://doi.org/10.1007/s11205-015-0891-z"
- Description: This paper constructs a Good Society Index for 45 African countries, termed the Good African Society Index (GASI). The GASI consists of nine main indexes: (1) economic sustainability, (2) democracy and freedom, (3) child well-being, (4) environment and infrastructure, (5) safety and security, (6) health and health systems, (7) integrity and justice, (8) education, and (9) social sustainability and social cohesion. Each component is split into four sub-components for a total of 36 indicators. Tunisia ranks highest on the GASI, followed by Cape Verde and Botswana. Chad has the lowest GASI score, followed by Central African Republic and Cote d’Ivoire. The GASI is strongly related to the 2012 Human Development Index and Fragile States Index, to a lesser extent, GNI per capita.
- Full Text:
- Date Issued: 2016
- Authors: Botha, Ferdi
- Date: 2016
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/396194 , vital:69157 , xlink:href="https://doi.org/10.1007/s11205-015-0891-z"
- Description: This paper constructs a Good Society Index for 45 African countries, termed the Good African Society Index (GASI). The GASI consists of nine main indexes: (1) economic sustainability, (2) democracy and freedom, (3) child well-being, (4) environment and infrastructure, (5) safety and security, (6) health and health systems, (7) integrity and justice, (8) education, and (9) social sustainability and social cohesion. Each component is split into four sub-components for a total of 36 indicators. Tunisia ranks highest on the GASI, followed by Cape Verde and Botswana. Chad has the lowest GASI score, followed by Central African Republic and Cote d’Ivoire. The GASI is strongly related to the 2012 Human Development Index and Fragile States Index, to a lesser extent, GNI per capita.
- Full Text:
- Date Issued: 2016
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