Research On The Impact Of Local Government Environmental Audit On Green Innovation Of Enterprises

At present,with the rapid development of the economy,environmental problems are rampant: air pollution,water pollution,soil erosion,ecological damage and other environmental disasters emerge in endlessly.Due to the seriousness of environmental problems,the importance of green innovation has become increasingly prominent.The government has also introduced a series of environmental regulation policies to encourage enterprises to take the path of green development.It can be said that green innovation is the common appeal of the government and enterprises.However,the ecological environment has externalities,and whether environmental regulation policies have a real effect on enterprises needs to be supervised and audited by local governments.Therefore,in order to achieve high-quality economic development and facilitate the green transformation of enterprises,the development of environmental audits is particularly necessary.As a special means of environmental governance,it may complement traditional environmental regulation measures.To this end,this paper intends to conduct an empirical test on the relationship between local government environmental auditing and corporate green innovation through regression analysis.Based on the data of Shanghai and Shenzhen A-share listed companies from2012 to 2020 as a research sample,this paper uses a multiple regression model to empirically test the role of local government environmental audits in promoting green innovation in enterprises.The research finds that: First,local government environmental audits promote corporate green innovation.The improvement of the level of innovation is reflected in the improvement of both the quantity and quality of green innovation;second,the adjustment inspection found that environmental protection funds will strengthen the regulatory effect of government environmental audit on green innovation of enterprises,that is,the "reversing" effect of pollution discharge fees and environmental protection.The incentive effect of subsidies;third,the mechanism test found that local government environmental audits will promote green innovation in enterprises by increasing the government’s environmental concerns and corporate environmental concerns;fourth,the heterogeneity test found that the regulatory effect of environmental audits in state-owned Enterprises,non-heavy polluting enterprises,enterprises with high media attention,and regions with low environmental governance are more significant;fifth,the expansion study found that environmental audits have significantly improved the green competitiveness of enterprises by promoting green innovation in enterprises.The possible research contributions of this paper are as follows: First,it enriches the research on local government environmental auditing.Local government environmental auditing has been carried out in China for more than 20 years.During this period,Chinese scholars have also been exploring the development of local government environmental auditing,but few scholars have conducted empirical tests on it.This paper examines the The necessity of local government environmental auditing provides enlightenment and suggestions for China’s environmental governance.Secondly,the research on the driving factors of green innovation is expanded.At present,most academic studies on the driving factors of green innovation focus on environmental regulation.The most discussed are command-type environmental regulation and market-type environmental regulation.The role needs to be tested,and the driving effect and regulatory effect of local government environmental audit on corporate green innovation need to be further explored.Finally,it provides a reference for carrying out local government environmental audits according to local conditions.Considering that the development of local government environmental audits will cost a lot of manpower,material resources and financial resources,based on the consideration of cost efficiency,this paper conducts a heterogeneous investigation from the internal and external environment,and analyzes whether local government environmental audits can actually play a role in promoting environmental audits in different regions or enterprises.,to provide reference and reference for policy makers,and at the same time,through the expanded research on green innovation,the awareness of environmental protection of enterprises has been enhanced,and the confidence of enterprises in green innovation has been enhanced.