Market-oriented debt-to-equity swap and enterprise financial performance

This study primarily examines the correlation between market-oriented debt-to-equity swaps (MDS) and the financial performance of enterprises, while concurrently investigating the mediating effects of internal controls. Our comprehensive analysis reveals a significant positive relationship between the implementation of the MDS policy and the financial performance of enterprises. Moreover, we identify that internal controls function as a crucial mediating factor between these two variables. Specifically, the enactment of the MDS policy leads to an improvement in corporate internal controls, which subsequently elevates the financial performance of the enterprise. Notably, these conclusions remain robust even after conducting rigorous robustness tests.