An examination of the impact of records on the value of artworks

Abstract

PurposeThe purpose of this paper is to discuss the role and type of records required to support the financial value of artworks and the importance of records for accountability. It looks at the impact of records of provenance, authenticity and investment value and it identifies the impact of the presence, absence and quality of supporting records on the value of an artwork.Design/methodology/approachAssessing records and their impact on the value of artworks involves investigating whether an artwork without records of authenticity, provenance and investment has the same value as one with such records. It also involves examining how records that provide evidence of an artwork's financial value (prices, auctions, transactions, condition reports, etc.) affect the value of the artwork. What is the impact of records on the value of an artwork? Research was conducted starting with a review of the literature and a small survey of experts.FindingsThe results suggest that art records are increasingly important with regard to ownership disputes, insurance claims, accountability for public spending, risk reduction and investment value. Records of provenance, investment and authenticity clearly support the value of artworks, yet the research highlighted a lack of awareness amongst experts about the importance of authenticity. Higher standards, record‐keeping, regular reviews of the artwork and the market and continuous improvements are required to maintain accountability and the value of a collection. Recommendations include regular updates of records, the keeping of records on rights, proof of ownership and long‐term retention.Practical implicationsFurther research would be required to clarify whether comparison methods are adequate for the price formation of artworks, to ascertain which records would be required and to establish recognised standards for the content of records. The findings raised awareness of the need for information on the creation of artworks.Originality/valueThe paper concludes by emphasising that it is essential to obtain records for a collection and to keep them secure and updated. It proposes that good record‐keeping reduces risks, improves transparency, supports the value attained and increases in importance as the financial value of art climbs. Many sources and types of record are necessary to support the value of an artwork, especially records of provenance, investment value and authenticity. An artwork with quality records in these categories has higher financial value.