In industrial firms, rules to control investment are implemented. We study the capital budgeting of divisions and wholly-owned subsidiaries. We analyse the relationships between, on the one hand, the investment autonomy of divisional managers and wholly-owned subsidiaries' managers and, on the other hand, the characteris-tics of unit, firm and their own characteristics. We then consider the choice of the legal position of the unit (division or wholly-owned subsidiary) with respect to managerial control. We test our hypothesis on a sample of about 200 units which belong to 104 industrial firms.investment;control;subsidiaries;divisions; contingency.