The Chinese Government Auditing and Green Finance: The Mediating Role of Fiscal Execution Efficiency

Amidst the dual constraints of insufficient resource supply and an imperfect institutional environment hindering the development of green finance in China, the Chinese government has actively advanced reforms to its government audit system to enhance fiscal execution efficiency. This study utilizes panel data covering 30 provinces in China from 2010 to 2021 and employs Hausman regression to assess the impact of Chinese government auditing on green finance. Furthermore, it empirically examines the mediating effects of fiscal revenue and expenditure execution efficiency on the relationship between the two. The empirical results indicate that Chinese government auditing has a significant impact on enhancing the development level of green finance. However, fiscal expenditure execution efficiency exhibits a significant full mediating effect. Correspondingly, the role of fiscal revenue execution efficiency is limited, exhibiting only a partial mediating effect. These findings highlight the institutional advantages of Chinese government auditing in promoting the development of green finance by improving fiscal execution efficiency. This study integrates government auditing, green finance, and fiscal execution efficiency into a unified analytical framework, enriching the theoretical system of green finance driving mechanisms. The research results also provide policy support for local governments in China to enhance their auditing models and strengthen fiscal execution capabilities, thereby improving the overall effectiveness of green finance development.