Abstract
This paper empirically examines the impact of mandatory internal control auditing systems on the financialization of enterprises based on China's A-share listed companies from 2007 to 2021 using a difference-in-differences model for empirical analysis. The findings indicate that mandatory internal control auditing has an inhibitory effect on corporate financialization. The heterogeneity analysis reveals that the mandatory internal control auditing system has a more significant inhibitory effect on the degree of financialization of non-state-owned enterprises, enterprises in the eastern region, and enterprises in the region with weaker financial regulation.
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