Management risk appetite, internal control and corporate financialization

•Higher management risk appetite promotes financialization•Internal controls dampen the impact of management risk appetite on financialization•Focus on regulation reduces the risk of financialization of firms 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.