The Influence of Shared Auditor’s Gender and Partner Background on M&A Decision-Making Behavior

This study aims to investigate the impact of shared auditors on the selection of M&A targets and analyze the moderating effects of the signing auditor’s gender and partner characteristics. In M&A transactions, shared audit firms or auditors are believed to contribute to information symmetry, which may influence the selection of target companies. However, there is a lack of systematic research on the specific role of shared auditors in M&A, particularly regarding the effects of their gender and partner characteristics. Based on data from Chinese listed companies between 2010 and 2020, this study uses a matched sample control group and the Probit regression model to evaluate the impact of shared auditors, their gender, and partner characteristics on M&A decisions. The findings reveal a positive effect of shared auditors on target selection in M&A. Specifically, female auditors demonstrate a significant positive moderating effect in M&A decisions, possibly due to their cautious approach and ability to build strong client relationships. In contrast, the background characteristics of partners have no significant impact on M&A decisions. Additionally, supplementary tests show that this relationship is not entirely dependent on macro-level monetary policies or economic policy uncertainty. The positive effect of shared auditors on target selection remains significant. This study provides empirical evidence for the role of shared auditors in M&A transactions, particularly highlighting the potential value of auditor gender. These findings offer important insights for both corporate M&A strategies and the consideration of gender diversity within the auditing profession. JEL Classification : M42.