from india, the quarterly journal of economics, oxford university press, vol. 128 ( 1 ), pages 1 - 51 bloom, n., r. sadun and j. van reenen ( 2016 ), management as a technology?, nber working paper no. 22327, revised in october 2017 bloom, n., r. sadun, and j. van reenen ( 2015 ), do private equity owned firms have better management practices?, american economic review, 105 ( 5 ) : 442 - 46 caliendo, mion, opromolla and rossi - hansberg ( 2015 ), productivity and organization in portuguese firms, nber working paper 21811 statistics portugal ( 2018 ), enterprises with more structured management practices present a better economic performance, more qualified employees and higher ict usage - 2016, press release lemos, r. and scur, d. ( 2018 ), all in the family? ceo choice and firm organization. cep discussion papers ( cepdp1528 ). centre for economic performance, london school of economics and political science, london, uk. office for national statistics, united kingdom ( 2018 ) management practices and productivity in british production and services industries - initial results from the management and expectations survey : 2016 1 nominal data ( source : eurostat ). 5 / 5 bis central bankers'speeches

, complex, extensive and constantly changing markets. responding to such challenges requires large organisations, able to capitalise on and mobilise quality resources. there are already empirical studies that confirm this positive link between company size and management quality. with a productive fabric like ours, largely made up of family - run businesses transitioning to the 3rd generation, the increase in the size of the organisations is closely linked to the business view of the families holding the equity. this leads the way to the third vector which i would like to draw your attention to : the relationship between ownership and management. empirical research has also found evidence that firms where there is share capital from outside the founding family are associated with best management practices. data also suggest that the mere separation of ownership and management is beneficial : as a general rule, the quality of the management is higher when it is entrusted to people outside the family that owns the firm. professionalisation of management is therefore a necessary condition to ensure the survival and long - term sustainability of family businesses and thus preserve their share capital. 3 / 5 bis central bankers'speeches in addition, the separation of ownership and management makes it possible to strike the right balance between the legitimate interests of the different stakeholders in the firm, thereby also contributing to its sustainability. meaning that, in a context where family businesses are predominant and where a large number is transitioning to the 3rd generation, or is already controlled by the 3rd generation, serious consideration needs to be given to the separation of entrepreneurial, ownership and managerial functions. specifically with regard to firms in the stage of generational transition, it is important to ensure that the ownership function is not only distinct from the management function but also exercised through decision - making mechanisms established in the firm ’ s articles, with a view to the sustainability of the organisation and the empowerment of the management. firms should prevent the decision - making mechanisms coming to a standstill owing to lack of interest or differences between heirs, rendering management powerless and calling into question the continuity of viable firms. in addition, public policy should favour the segregation of these functions so as to ensure that there is room for management professionalisation and thus improve the quality of management. in fact, public policy can encourage management professionalisation in family - run firms in different ways : first, by re - analysing the tax treatment of profit distribution to encourage differentiation between ownership and management, and to foster a suitable balance between profit distribution and reinvestment ; second, making the requirement for firms to present audited accounts