Effectiveness of government environmental auditing in the industrial manufacturing structure upgradation

This paper is based on “Opinion of the Audit-Commission Strengthening Resource and Environmental Auditing” issued by Audit Commission in 2009. The commission suggested studies impact industrial structure upgradation manufacturing enterprises China, 2006 to 2008 stocks listed companies Shanghai Shenzhen. Propensity Score Matching (PSM) Differences-in-Differences (DID) were used test induced effect policy comparing experimental control groups before after implementation. study found that government environmental auditing (GEA) upgrades industry. data also reveals positive GEA was significantly manifested state-owned (SOEs). findings validate governance GEA, expand perspective enterprises, provide suggestions regulatory transformation enterprises.