Carlton-james Osakwe

Biography

Determining how the cost of capital for family firms differs from larger corporations, particularly in the realm of information dissemination, forms the basis of some of Dr. Carlton Osakwe's current research. Dr. Osakwe, an associate professor of finance in the Bissett School of Business examined financial securities design as it relates to the issue of incentives for his PhD. His research continues to focus on adverse incentives and real options, specifically regarding the cost of capital for family firms and incentive compatible regulation. There is debate in the financial community about why family firms tend to perform better than bigger corporations, with some attributing this to the "family effect" -- family members tend to work harder for their own companies. Osakwe believes a better measure is the cost of capital -- if it is, in fact, lower for family firms, their performance should be better. Currently Dr. Osakwe is building a theoretical framework for his hypothesis using a Grossman-Stiglitz information framework. His model explores whether the cost of capital for family firms is in fact different from other firms and if so, why. His research here, focuses on two factors: the non-monetary benefits derived by family members, and the opaqueness of information prevalent in family firms. A Model for Evaluating Academic Scholarship: Review and Operationalization of Boyer’s Criteria Lived Experience of New Faculty in a Transitional Institution

Research Interest

Financial Risk Management, Investment Principles, Introduction to Finance.