The influence of female auditors on information quality in financial statement notes

Enhancing the quality of information in financial statement notes and minimising templated disclosures are of crucial importance for improving the readability and decision-usefulness of financial reports. Based on a sample of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2013 to 2021, this paper examines the contribution of female auditors to the incremental information of financial statement notes. The findings indicate that financial statement notes audited by female auditors demonstrate lower textual similarity, suggesting a lower degree of templating and a higher level of specific disclosure. Mechanism tests reveal that female auditors, characterised by their meticulousness, lower risk tolerance and conscientiousness, significantly enhance the quality of information in financial statement notes. Further analysis shows that the incremental information provided by female auditors includes not only detailed quantitative data but also valuable qualitative insights, both of which are effectively interpreted by investors, thereby increasing the earnings response coefficients.