The objective of this article is to determine the relation between managerial ownership and the performance of firms as well as the impact of managerial entrenchment on the firms' financial policy. The analyses of regressions on 283 firms show that the relation between the managerial ownership and the performance of firms is non linear. It takes the shape of the alignment, then of the entrenchment, then again of the alignment, as the managerial ownership increases. The manager possessing a part of capital between 5.72% and 55.47% is more susceptible to be entrenched and he/she prefers a weak ratio of debt to escape both the shareholders' control and the market's pressures of performance.