Abstract:Using A-share listed companies in China from 2007 to 2019 as research samples, this study examines the effect of government environmental audit from the perspectives of local officials and corporate executives. The research found that government environmental audit can enhance the level of green innovation of industrial enterprises. The emphasis on environmental protection by both local officials and corporate executives can amplify this promoting effect. Local officials convey environmental concepts to corporate executives through environmental subsidies and pollution charges, leading to adjustments in executive compensation contracts within enterprises to incentivize environmental initiatives. Furthermore, government environmental audit can achieve both quantitative and qualitative improvements in corporate green innovation and contribute to the development of New Quality Productive Forces. This effect is influenced by various internal and external factors of enterprises. The findings provide theoretical evidence and policy suggestions for further leveraging government environmental audit to strengthen ecological civilization construction.