Familial control, size and performance in the largest French firms

This paper explores to what extent large French firms in the hands of wealthy families have performed in a significantly different manner from non-familial firms. The results of the econometric analysis confirms the Monsen Downs Williamson theory according to which only a combination of size and divergent goals could cause deviations from profit-maximization. Indeed, it is established that when ownership and management are not essentially separate, large size has a systematically better impact upon profitability than when such a divorce exists. Differences in financial structure viz leverage do not affect the result.