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Music royalty shares: Investment or fandom?

Author

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  • Koh, Byungwan
  • Park, James L.
  • Kim, Jaehwan

Abstract

This study examines how music royalty shares on Musicow, a Korean trading platform, are priced during an exogenous regulatory shock classifying these assets as securities. Using transaction data, we show that the shares linked to popular artists are associated with a valuation premium. However, these shares decrease more sharply following the shock, suggesting that economic fundamentals supersede fan-driven sentiment. Our findings highlight that, even in markets for cultural goods, investor behavior aligns closely with rational valuation in the context of external risk.

Suggested Citation

  • Koh, Byungwan & Park, James L. & Kim, Jaehwan, 2025. "Music royalty shares: Investment or fandom?," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003635
    DOI: 10.1016/j.econlet.2025.112526
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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