In recent years, frequent incidents of food safety and financial fraud have exposed the lack of internal control of listed companies in China. This paper aims to investigate the impact of debt financing on internal control, using annual data from listed companies in Shanghai and Shenzhen from 2009 to 2018. Results document that debt financing is negatively associated with internal control. Considering the heterogeneity of debt subjects, this study indicates that the negative effect of bank creditor’s rights on internal control is more significant than that of creditors rights of suppliers. Furthermore, debt financing has a negative impact on the internal control by the way of deteriorating business performance.