Credit markets, strict financial regulation, and the financialization of listed firms.

• We examine the relationship between credit markets and financialization of real firms. • We find that financial strong regulation plays a mediating role in the mechanism of action. • Financial strong regulation strengthens this positive effect. Real entities in China have increasingly shown characteristics of financialization due to the economic crisis and overcapacity. However, there are few scholars to explore the intricacies of the credit market and its influence on corporate financialization, leading to ambiguity in the current comprehension. This paper conducts an empirical analysis to examine the influence of credit markets on corporate financialization based on A-share listed firms spanning 2008 to 2021, providing practical suggestions for businesses. [ABSTRACT FROM AUTHOR]