Corporate financialization, internal control and financial fraud

The article explores the moderating role of internal control in the impact of financialization on financial fraud. The study, based on non-financial listed companies, shows that as non-financial companies become more financialized, they are significantly more likely to engage in financial fraud. After classifying the assets of companies, the article finds that the facilitative effect of financialization on financial fraud mainly stems from medium and small enterprises. Further research shows that internal control plays a negative role in financial fraud promoted by corporate financialization.