Purpose Art and finance have been intertwined for many centuries. Artists benefit from finance market opportunities to thrive their endeavors, while dealings in the arts enable finance institutions to signal cultural status. The idea of money to gravitate around aesthetic value is as old as the Renaissance, a period which is often attributed as the beginning of arts consumption. The discounted value of cultural capital expressed in the arts is one of the most significant long-term economic revenue-generating multipliers of nations. It is therefore surprising that accounting for arts is somewhat unstandardized and economics does not hold a value theory of art in pricing. Design/methodology/approach In order to capture the value of arts, this article theoretically introduces an economic value theory of arts and methodologically a comparative overview of accounting for the arts under international standards and in the United States. Findings This article compares accounting standards for the arts from an international angle and in the United States. The article offers insights into pricing arts derived from economic, finance and socio-cultural perspectives. Research limitations/implications The interdisciplinary and international findings prepare for further empirical validation of arts economics. Research on arts economics and comparative art regulation is limited but necessary given the rising trend of art being used as a collateral, which has ample economic and financial implications. Practical implications The discussion highlights the importance of measuring value in arts accurately in light of the growing use of art as a financial collateral and diversifying hedge against inflation and overall financial market downturns. The research has practical applications in accounting, economics and finance. Comparing accounting standards in arts valuation is essential for standardization and risk control. Economics is strengthened through a value theory of art and arts value discounting. Finance gains insights into asset valuation, securitization in arts as collateral and benchmarking of options. Labor conditions in the arts creation and production are improved through transparency and scientific accountability. Social implications The article offers insights into pricing arts derived from economic, finance and socio-cultural perspectives. The research has societal implications as well as global governance impetus. Investing in arts is nurturing a cultural value creation that offers lasting wealth of nations. For global governance, the comparability of arts accounting standards bestows stability in the arts market and allows for further standardization, such as international registries. Originality/value In order to capture the short-term value of arts, this paper theoretically introduces art markets (Chapter 2) with reference to accounting standards in the United States and Europe (Chapter 3). Potential long-term economic arts value measurement factors are proposed (Chapter 4) with attention to discounting over time in finance but also socio-cultural dynamics (Chapter 5). The discussion highlights the importance of measuring value in art accurately in light of the growing use of art as a financial collateral and hedge against inflation (Chapter 6).
Puaschunder et al. (Fri,) studied this question.