A transformation in the French model of shareholding and management

Abstract This article explores the French model of shareholding and management, identifying a significant transformation in the pattern of shareholding in the largest companies. In earlier configurations of ownership, first the State and then the system of cross shareholdings were at the centre of French capitalism; the new pattern of shareholding operates under a different logic and motivation. In effect, France has undergone rapid change from a 'financial network economy' to a 'financial market economy'. This new pattern of shareholding has not only broken the traditional system of cross shareholding, but it has also facilitated the arrival of foreign institutional investors who bring with them new techniques and demands on corporate management. Keywords: French EconomyCapitalismShareholder ValueCross-shareholdingsInstitutional InvestorsManagerial Revolution