Corporate Ownership of Fine Art: Firm Valuation, Societal Impacts, and Philanthropy

This article examines the valuation and ESG performance of firms with corporate collections of fine art. Specifically, this article looks at whether having an art collection affects a firm’s valuation. With corporate art collections, there may be the potential for agency issues or the possibility of value enhancement for the firm. This article also examines whether firms with corporate art collections are more socially minded in terms of environmental, social, and governance measures, and philanthropy. The findings provide evidence that firms with corporate art collections have higher environmental, social, and governance performance, while maintaining equal value to their peers.