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Management risk appetite, internal control and corporate financialization

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  • Jin, Yuxi

Abstract

This paper examines the impact of management risk appetite on corporate financialization among non-financial firms listed on the Chinese A-share market over the period 2009–2021. The empirical analysis shows that there is a significant positive relationship between management risk appetite and corporate financialization. In addition, the moderation effect results highlight that firms' internal controls play a negative moderating role between management risk appetite and financialization. These findings have far-reaching implications for regulators, standard setters and corporate governance bodies, as they highlight the need for effective internal control systems to ensure financial stability.

Suggested Citation

  • Jin, Yuxi, 2024. "Management risk appetite, internal control and corporate financialization," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324004239
    DOI: 10.1016/j.frl.2024.105393
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    References listed on IDEAS

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