Monitoring Duties Research Articles

Dynamics of the Darul Dakwah Wal Irsyad Foundation Educational Institution in the Aspects of Islamic Educational Management

The dynamics of growth and development of Madrasa Tsanawiyah Darud Dakwah Wal Irsyad Palu are covered in this research from an educational management perspective. The methodologies used in research are library research. Data is collected based on books, journal, written works, including research results both published and unpublished. The aim of this research is to evaluate and examine the dynamics of the expansion and progress of the Temporary Darud Dakwah Wal Irsyad Madrasa Tsanawiyah (1969–2013). The study’s findings suggest that the dynamic growth of Darud Dakwah Wal Irsyad Madrasa Tsanawiyah year over year year from 1969 to the present not seeing any notable expansion. Several things have been done, such as exploring the hamlet to look for prospective students, disseminating information, and promoting the local community. However, the results did not show significant progress. Several factors that influence this include: Planning has not been integrated with the planning function. Through coordination between the Darud Dakwah Wal Irsyad of Regional Management and Darud Dakwah Wal Irsyad Madrasa Tsanawiyah, the implementation function remains unchanged while the supervision function continues to run simultaneously. It seems that the implementation of this function is carried out simultaneously with both the internal control monitoring duties carried out by the head of Madrasa Tsanawiyah, Darud Dakwah Wal Irsyad Palu, and the exterior supervision carried out by the Regional Management of the Madrasa Committee and Darud Dakwah Wal Irsyad.

COVID-19 Knowledge and Prevention Behaviors in Rural Zambia: A Qualitative Application of the Information-Motivation-Behavioral Skills Model.

In early 2020, the Zambian Ministry of Health instituted prevention guidelines to limit spread of COVID-19. We assessed community knowledge, motivations, behavioral skills, and perceived community adherence to prevention behaviors (i.e., hand hygiene, mask wearing, social distancing, and limiting gatherings). Within a cluster-randomized controlled trial in four rural districts, in November 2020 and May 2021, we conducted in-depth interviews with health center staff (N = 19) and community-based volunteers (N = 34) and focus group discussions with community members (N = 281). A content analysis was conducted in Nvivo v12. Data were interpreted using the Information-Motivation-Behavioral Skills Model. Generally, respondents showed good knowledge of COVID-19 symptoms, spread, and high-risk activities, with some gaps. Prevention behavior performance was driven by personal and social factors. Respondents described institutional settings (e.g., clinics and church) having higher levels of perceived adherence due to stronger enforcement measures and clear leadership. Conversely, informal community settings (e.g., weddings, funerals, football matches) lacked similar social and leadership expectations for adherence and had lower perceived levels of adherence. These settings often involved higher emotions (excitement or grief), and many involved alcohol use, resulting in community members "forgetting" guidelines. Doubt about disease existence or need for precautions persisted among some community members and drove non-adherence more generally. Although COVID-19 information successfully penetrated these very remote rural communities, more targeted messaging may address persistent COVID-19 doubt and misinformation. Engaging local leaders in religious, civic, and traditional leadership positions could improve community behaviors without adding additional monitoring duties on an already overburdened, resource-limited health system.

Which attributes of audit committees are most beneficial for European companies? Literature review and research recommendations

PurposeThis paper aims to review 68 archival studies on the impact of audit committees (ACs) on firms’ consequences [(non)financial reporting, performance and audit quality] in European firms.Design/methodology/approachApplying a stakeholder agency-theoretical framework, the author differentiates between three categories of AC variables: presence; composition; and resources, incentives and diligence.FindingsThe author finds that AC composition, (non)financial reporting and audit quality are dominant in the literature review. Other inputs or outputs are either too low in amount or yielded heterogeneous results, hindering clear tendencies. However, there are indications that financial expertise is positively related to financial reporting and audit quality, in line with agency theory and European regulatory assumptions.Research limitations/implicationsIn the discussion of potential future research, the author emphasizes, among others, the need for the recognition of innovative and sustainable AC variables, inclusion of moderator and especially mediator variables and reaction to endogeneity concerns by advanced regression models.Practical implicationsAs the European Commission currently discusses extended regulations on AC duties and composition, this literature review highlights the huge impact of financial expertise on financial reporting and audit quality. In view of the increased monitoring duties of sustainability reporting, both business practices and regulatory bodies should increase the sustainability expertise of ACs.Originality/valueThis analysis makes useful contributions to prior research by focusing on attributes of AC and their impact on firms’ outputs in the European capital market, based on a differentiation between mandatory one-tier/two-tier systems and the choice model. The findings support the promotion of European evidence-based regulations, such as the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive.

The law and economics of AI liability

The employment of AI systems presents challenges for liability rules. This paper identifies these challenges and evaluates how liability rules should be adapted in response. The paper discusses the gaps in liability that arise when AI systems are unpredictable or act (semi)-autonomously. It considers the problems in proving fault and causality when errors in AI systems are difficult to foresee for producers, and monitoring duties of users are difficult to define. From an economic perspective, the paper considers what liability rules would minimise costs of harm related to AI. Based on the analysis of risks and optimal liability rules, the paper evaluates the recently published EU proposals for a Product Liability Directive and for an AI Liability Directive.

A Fog-Based Architecture for Latency-Sensitive Monitoring Applications in Industrial Internet of Things

In industrial wireless sensors networks (IWSNs) deployments, data management and processing tasks are often delegated to centralized computing facilities. Albeit providing an abundance of resources, these solutions impose several drawbacks, stemming from the higher latency they may introduce, as well as from security/privacy issues. To deal with these shortcomings, in this article, we propose an architecture designed for industrial monitoring duties, based on the Fog computing paradigm. In particular, we devised a Fog layer to host a data aggregation algorithm based on singular value decomposition (SVD). Considering a real-world case study about a distributed monitoring system for industrial motors, the benefits of the proposed solution in terms of network performances, i.e., latency and packet delivery ratio, are analyzed using the OMNET++ simulator. Besides, the system implements a set of security mechanisms at different levels (i.e., IWSN, Fog, and Cloud). In particular, we propose a new lightweight and energy-efficient ciphering algorithm for resource-constrained industrial motes. According to our experiments, the new algorithm reduces energy consumption by a factor of three compared to Advanced Encryption Standard-128.

What and how will the Risk Based Approach to Monitoring change? Survey of RBM in medical institutions

Paralleling the revision and enforcement of regulatory guidance, the Risk-based Approach to Monitoring (RBM) is becoming increasingly important in process management at medical institutions. Although the incorporation of RBM practices is intended to streamline the monitoring of clinical trials, whether it in fact improves the effectiveness of associated duties at participating organizations remains unclear. Regarding RBM and its benefits, we surveyed 391 clinical research coordinators and data managers at Japanese medical facilities. The results of the survey suggest that RBM does in fact decrease the frequency of on-site visits from clinical research associates. Conversely, rather than reducing staff burden as intended, off-site monitoring (by telephone and e-mail) was reported to increase the workload of monitoring personnel. Our survey findings indicate that sponsors need to optimize the use of on-site, off-site, and central monitoring practices to maximize the efficiency of RBM. Regarding central monitoring duties in particular, data regarding the items of “eligibility/enrollment,” “treatment suspension/dose reduction/discontinuation,” and “initial treatment, related PK and tests, etc.” should be checked carefully for errors and omissions, and information entered through electronic data capture mechanisms should be confirmed cross-sectionally.

Zigbee-Based Low Power Consumption Wearables Device for Voice Data Transmission

Short-range wireless technologies can transmit real-time voice, audio, picture, and video communications. Such networks’ energy usage and transmission reach are crucial, especially for portable and power autonomous devices. Voice over Zigbee technology’s goal is to create a competitive service that excels in these performance factors. IEEE standard 802.15.4 specifies two layers for low-rate WPANs: the physical layer and the media access control layer, with a data rate limit of 250 kbps. This partnership used low-level PHY and MAC layers as the foundation for developing the Zigbee network protocol, security, and applications. To overcome the problem of lowering costs and power usage to make this technology more accessible to the general public. This system displays the network’s operational data, such as wireless voice communication. This effort was made to minimize the overall cost of manufacturing such gadgets that contribute to home automation systems and related projects. The primary goal of the research was to communicate voice through low-power microcontrollers such as 8-bit microcontrollers using Zigbee. In this study, we developed a wireless sensor network (WSN) communication system based on Zigbee to securely transfer speech data over a medium-range distance (medium) and lower the equipment cost and communication expenses by 30% without compromising the data integrity. A testbed has been established to validate the fundamental functionality of the proposed ZigBee-based home network system. The suggested system’s network coverage capabilities were evaluated, as well as its packet loss and energy savings in long-term wireless network monitoring duties.

A mixed methods analysis of the monitoring of oral anti-cancer therapies.

Oral anti-cancer therapies offer advantages over parenteral therapies in terms of their non-invasive nature and reduced intrusiveness. However, the shift from directly observed administration of these therapies to home administration means that continuous monitoring is needed. The oral anti-cancer therapy market is rapidly growing, with an ever-increasing number of new medicines available for the patients presenting with cancer illnesses. This study aims to (i) evaluate both the cost of providing monitoring consultations of oral anti-cancer therapies, and (ii) to assess the experience of cancer therapy nurses responsible for the monitoring and their opinions of the quality of the service. This study provides a mixed methods evaluation of the monitoring of oral anti-cancer therapies. Nurses were asked to record the time taken for them to perform their monitoring duties, and staff related costs were calculated using publicly available salary data. Patient-related costs were calculated using the Human Capital method. Nurses were asked to discuss their experience of monitoring oral anti-cancer therapies in semi-structured interviews. These interviews were subsequently analysed using thematic analysis. 201 recordings and their associated costs were documented. The median consultation time was 33min, costing €22.10 using Clinical Nurse Specialist salary figures and €26.51 using Advanced Nurse Practitioner salary figures. The associated patient cost was €14.06. Themes of the effect of Covid-19 on the service, expanding and complicated care package requirements, the need for dedicated oral clinics and the future of the service emerged from the interview data. The monitoring service provided by nurses may be undervalued. The commitment to fully dedicated oral anti-cancer therapy clinics and an increase in staff to align with the ongoing increase in service demand is seen as vital for the continued safe and effective delivery of this specialist cancer service.

Monitoring or payroll maximization? What happens when workers enter the boardroom?

We examine whether worker representation on corporate boards results in improved monitoring or payroll maximization. Several economic theories predict that worker representatives would use control and voting rights in the boardroom to transform firm assets into private benefits and increased wages, but labor contract models suggest that workers’ inside information should permit improved monitoring. To investigate this conflict, we use mandatory worker representation on corporate boards in Germany. Using hand-collected data, our results suggest that the worker representatives’ payroll maximization incentives dominate their monitoring duties. Specifically, worker representatives reduce real earnings management when it results in wage cuts or job losses but not when it increases payroll or job security. Similarly, worker representatives are generally associated with improved monitoring of tax planning activities. However, when the risk of offshoring jobs is high, worker representatives do not promote tax planning for low-aggression firms and instead block aggressive tax planning for high-aggression firms. This evidence helps policymakers and researchers better understand the role of workers in corporate governance systems and contributes to the ongoing public debate about introducing worker representation in the United States and the United Kingdom.

Do Board Gender Quotas Benefit Minority Shareholders? An Illustration through Related‐Party Transactions

AbstractWe use a sample of French firms over the period 2001–2017 to investigate the relationship between board gender diversity and related‐party transactions (RPTs). Although some of these transactions are efficient, RPTs are usually perceived negatively by outsiders because of the existence of conflict‐of‐interest transactions deemed to be value‐destroying. Based on agency theory and managerial power theory, we argue that female directors have the ability and motivation to challenge managers’ use of RPTs. Consistently with this argument, we find that board gender diversity negatively correlates with the number of reported RPTs. This negative correlation is driven by female directors involved in the board's monitoring duties (female independent directors and members of the audit committee). However, because they are less likely to be able to challenge managers, female inside directors do not affect the occurrence of RPTs. In January 2011, the French regulator enacted a gender quota law resulting in a significant increase in female board representativeness. We find that the marginal effect after enacting the gender quota law on the number of reported RPTs is negative for the proportion of female independent directors and female audit committee members, and positive for female inside directors.

The impact of boards of directors’ characteristics on cash holdings in uncertain times

This study examines the relationship between the board of directors and cash holdings before and during the global financial crisis. We focus on the main demographic characteristics of the board: CEO duality, independent directors, and board size. Employing a sample of listed Italian industrial firms over the period 2003–2013, our empirical findings show the different behaviors of the members of the board of directors in determining cash holdings in normal conditions and during a crisis. In normal periods, in line with agency theory, a vigilant board—characterized by a high proportion of independent directors—reduces cash holdings. Diversely, the presence of CEO duality and larger boards increase cash holdings. In times of crisis, members of the board of directors abandon their monitoring duties or opportunistic behavior and become more participative to help the firm to survive. The results suggest that the effects of the board of directors’ characteristics are contingent on a firm’s external environment.

¿Compartir contenidos en línea o no? Un análisis del artículo 17 de la Directiva sobre ropiedad intelectual en el mercado único digital = To upload or not – an analysis of art. 17 of the Directive on copyright in the digital single market

Resumen: El “filtro de carga” para las plataformas de intercambio en línea ha sido uno de los temas más candentes en relación con la nueva Directiva 2019/790 sobre derechos de autor y derechos afines en el Mercado Único Digital (DCMUD). La batalla continúa en el ámbito nacional a la hora de afrontar la correcta y equilibrada transposición del art. 17 DCMUD, en particular en lo que respecta a garantizar la libertad de expresión. Este ensayo explora el sistema de responsabilidad del citado art. 17 y analiza su potencial contradicción con los derechos fundamentales de la Unión Europea, tal y como han sido ponderados por el TJUE en el asunto SABAM Netlog y otros recientes, en particular, con la pro­hibición de deberes generales de control y supervisión. Aunque sería posible argumentar que el art. 17 DCMUD podría superar ese examen de contraste, el precepto articula varias opciones de transposición que podrían emplearse para garantizar los derechos de los usuarios y la libertad de expresión.Palabras clave: propiedad intelectual, derechos de autor, plataformas de intermediación, puertos seguros, filtros de carga, contenidos digitales, contenidos generados por los usuarios, derechos funda­mentales, libertad de expresión, liability, e-commerce.Abstract: The “upload-filter” for online sharing platforms have been one of the hot issues regar­ding the new DSM-directive on copyright. The battle continues at the national level concerning the correct and balanced implementation of Art. 17 DSM-D, in particular regarding the guarantee of free­dom of speech. The article explores the liability system of Art. 17 DSM-D and analyzes its potential contradiction to fundamental EU rights which has been laid down by the CJEU in the SABAM Netlog case, in particular the prohibition of general monitoring duties. Even though one might argue that Art. 17 DSM-D could pass that test the article develops several implementation options in order to safeguard user rights and freedom of speech.Keywords: copyright, intermediary platforms, safe harbours, upload filters, digital contents, user generated contents, fundamental rights, right of free speech, responsabilidad, comercio electrónico.

Busy boards and corporate earnings management: an international analysis

PurposeBecause of our limited understanding of the incidence and effect of board busyness globally, the mixed evidence of the effect of board busyness obtained in the USA and the divergence of international patterns of director busyness from that observed in the USA, the author contends that there is a strong need to examine board busyness from a global perspective. The literature, however, does not examine the effect of board busyness on reported earnings quality and certainly does not analyze it internationally. Consequently, the purpose of this study is to examine the effect of multiple board appointments on the quality of a firm’s reported earnings.Design/methodology/approachThe research design for this study is empirical. It uses both univariate and multivariate statistical analysis to examine historical corporate accounting, finance and governance data.FindingsConsistent with the busyness hypothesis of corporate governance, the author finds that firms with a higher proportion of busy independent directors or busy CEOs manage their earnings more extensively. Further, the findings of this study present that firms with a higher proportion of busy independent audit committee members have poorer financial reporting quality. Using a sample of American Depository Receipts (ADRs), this study determines that the ineffectiveness of busy boards regarding earnings management is mitigated by the listing regulations imposed by US exchanges.Research limitations/implicationsThe author believes that this study offers new and important evidence regarding the debate whether busy directors provide knowledge, skill and corporate connections, or whether they are overextended and, thus, unable to fully perform their monitoring duties. This study shows that firms with busy directors are associated with poorer financial reporting quality and, consistent with the busyness hypothesis, are less effective as managerial monitors.Practical implicationsThis study provides useful guidance regarding board design and the kinds of policies that firms should adopt regarding multiple boarding.Social implicationsThe social implications focus on the public policy implications regarding the importance of effective corporate governance in the reporting of financial wealth, wealth creation and wealth management.Originality/valueThis is the first study that examines the relation between board/committee busyness and corporate earnings management using a comprehensive set of international firms. Second, the author expands the analysis of audit committee into a new dimension: committee quality as captured by the busyness of its independent members. This study also contributes to the ongoing debate in the corporate finance literature regarding the reputation and busyness hypotheses of multiple directorships.

What Happens to Tax Aggressiveness and Earnings Management when Workers Enter the Boardroom?

We examine whether worker representation on corporate boards results in improved monitoring or payroll maximization. Several economic theories predict that worker representatives would use control and voting rights in the boardroom to transform firm assets into private benefits and increased wages, but labor contract models suggest that workers’ inside information should permit improved monitoring. To investigate this conflict, we use mandatory worker representation on corporate boards in Germany. Using hand-collected data, our results suggest that the worker representatives’ payroll maximization incentives dominate their monitoring duties. Specifically, worker representatives reduce real earnings management when it results in wage cuts or job losses but not when it increases payroll or job security. Similarly, worker representatives are generally associated with improved monitoring of tax planning activities. However, when the risk of offshoring jobs is high, worker representatives do not promote tax planning for low-aggression firms and instead block aggressive tax planning for high-aggression firms. This evidence helps policymakers and researchers better understand the role of workers in corporate governance systems and contributes to the ongoing public debate about introducing worker representation in the United States and the United Kingdom.

Social impacts of citizen science water monitoring programs

The drive to protect and improve surface water quality requires an array of policies, institutions, professionals, and procedures, even in the face of uncertain budgets and an increasing scope of work. Since the 1990s, the concept of “citizen science” has provided a framework under which volunteers supplement the water monitoring duties of scientists by producing more data and, in some cases, expanding their reach (Conrad and Hinchey 2011; McKinley et al. 2017). Volunteers, on the whole, benefit by contributing to society (Lawrence 2006), and by learning about science and environmental issues (Hecker et al. 2018; McKinley et al. 2017; Phillips et al. 2018). Many citizen science programs welcome youth, but this paper focuses on programs for adults.

Marrying Diversity and Independence in the Boardroom: Just How Far Have You Come, Baby?

Corporate governance reform, with its focus on agency costs, and corporate diversity, with its emphasis on social equity, would appear to have little common ground, other than the corporate setting. Both strands of reform, however, share an important goal: improved functioning of the corporation through more active decisionmaking by its board. The spectacle of boards asleep at the wheels of governance jarred Congress into action in the wake of the multibillion dollar Enron/Worldcom string of debacles. Despite massive regulatory changes in corporate governance mandated by Sarbanes-Oxley, however, skyrocketing executive compensation, backdating of options, and mis-reporting of financial statements continue to command the news. This article examines the theoretical and empirical basis for independence as a solution to director dereliction of monitoring duties, and posits that the lack of empirical support for independence may be due to a definitional quandary, and that defining independence as mere absence of financial conflicts rather than diversity of opinion may be the root of the problem. This article takes an interdisciplinary approach to accountability of large publicly held corporations, using economics and cognitive insights into human rationality to assess the role of law in structuring human interactions - in this case focusing on the decision making processes of directors of large publicly held corporations. In particular, this article examines the Sarbanes-Oxley Act's corporate governance solution of emphasizing the role of independent directors in the firm. This article further explores the psychology of small group dynamics, examines the inherent problems of homogeneous groups, and suggests ways in which diversity of opinion mitigates the effects of small group dynamics. My article recognizes that the trust fostered by homogeneity has the dark side of quashing dissent, and suggests ways to overcome resistance to diversity. This article concludes that nourishing a culture of dissent is the foundation for the kind of decisionmaking that leads to effective monitoring, and that while gender and ethnic diversity are no guarantors of diverse viewpoints, they are a good place to start in creating the kind of board culture that will begin to take its monitoring duties seriously.

A configurational perspective on the role of the quad model and context for board engagement

Why are some boards of directors highly engaged in carrying out both their monitoring and service roles, while others are not? To examine this question, our study builds on Hambrick, Misangyi and Park’s (2015) theoretical quad model, which proposes that the likelihood of boards effectively fulfilling their monitoring duties depends upon directors having simultaneously four key attributes: independence, expertise in the area being monitored, eagerness, and bandwidth. Rather than just focus exclusively on a board’s monitoring role, we propose that the quad attributes will also affect the extent to which directors engage in their service role. We also, suggest that the saliency of the quad model for predicting the extent to which boards will be more likely to engage in their dual role will be greater if the four dimensions are considered from a configurational perspective. As such, consistent with the configurational perspective and the fsQCA technique, our findings show that the level of board engagement in our sample firms depends upon the overall configuration of quad model attributes and contextual elements. We show that there are multiple ways the quad board attributes bundle and combine with important elements of the context to lead to either high or low levels of board engagement. In contrast to previous research that has largely focused on how a particular board or contextual attribute has a net effect on governance outcomes, we show the importance of taking into account both equifinality and causal asymmetry.

The Hidden Power of Compliance

Although corporate wrongdoing can reach an immense scale with disastrous ramifications, holding boards accountable has long been perceived as elusive. Under both state fiduciary duty law and federal securities doctrine, directors and officers are liable only if they were aware of corporate failures or reckless in ignoring them. Since providing evidence of awareness or recklessness is exceedingly hard, corporate law scholars have long seen these requirements as raising an almost impenetrable shield over the board. Instead, we demonstrate that the evidentiary path to boards’ state of mind is nowadays more open than it has ever been before, due to the revolutionary growth of compliance departments in recent years. Corporate law literature has largely dismissed compliance as ineffective, fearing that in-house monitors would be too weak or too loyal to constrain corporate wrongdoing. Contrary to this conventional wisdom, we argue that legal and compliance experts’ reports and recommendations, especially if ignored at the time they were made, often expose the board to liability once misconduct is revealed. To support our argument, we turn to parallel case law developments in Delaware fiduciary duty law and federal securities doctrine in the last ten years. We show that, in order to better delineate board liability, state and federal rulings have raised the evidentiary standards, demanding concrete proof that directors were aware of ongoing violations or had received sufficient red flags. In response, courts turn time and again to internal reports by legal and compliance personnel, which are well-suited to offer the requisite evidence. We offer a systematic analysis of Delaware jurisprudence in the last ten years since the landmark Stone v. Ritter ruling, which shows how instrumental legal and compliance personnel are in guiding the board through the multi-pronged requirements of its monitoring duties. We trace similar developments in federal securities class actions under Rule 10b-5. Finally, we discuss a small but growing body of law which imposes personal liability on legal and compliance personnel if they fail to alert the board about ongoing misconduct or gaps in its oversight systems. The threat of personal liability further cements the position of these officers vis-a-vis the board. To show how these developments transformed the legal treatment of massive corporate wrongdoing in practice, we study four recent high-stakes corporate debacles: the Wells Fargo fake accounts scandal, the Yahoo cybersecurity breach, the General Motors ignition switch scandal, and the Washington Mutual mortgage meltdown. Our case studies illustrate that the choices legal and compliance officers make when communicating with the board end up determining its liability. Chief legal and compliance officers, we conclude, have become the leading corporate actors in ensuring sound risk management and ethical leadership for companies.

Supervision and Audit of the Greek Agricultural Cooperatives: A Critical Approach on Legislation

The supervision and audit of agricultural cooperatives in Greece are neither defined nor used with a clear content in the Greek legal texts. Nevertheless, it has been argued that supervision is mainly associated with broad monitoring duties, including advice and guidance, whereas audit is usually limited to a financial and legal control of the enterprise. The aforementioned institutions have not been adequately prescribed by law and effectively applied in practice, in order to address the cooperatives’ needs and protect the members’, the minority’s and the public interest. The recent legal reforms, since the outbreak of the crisis, brought to the fore the topic of cooperative supervision and audit. Thus, a question is posed of whether they have been a positive step forward. The present article, therefore, aiming to analyze relevant past and recent laws, concluded that despite minor innovations the shortcoming of the above institutions are yet to be resolved. Thus, a politically independent supervisory authority, a cooperative- oriented audit examining the cooperative’s impact to its members, the environment and the local community, as well as the formation of a scientific committee to monitor the cooperative laws’ implementation are suggested as necessary changes for the improvement of the existing regime.

Board age and corporate financial fraud: An interactionist view

Unlike past studies which have focused on either executives or boards of directors, this study takes an interactionist view to investigate the determinants of corporate financial fraud. We propose that CEOs evaluate the opportunities for financial fraud according to both situational stimuli and their own personal characteristics. As older directors are often more experienced and have more to lose if they fail in their monitoring duties, we expect them to be more capable and to have stronger motivation for monitoring CEOs closely. As such, we propose that a CEO is less likely to engage in corporate financial fraud when the average age of the board of directors increases (i.e., board age). However, when the CEO is older than the board, the CEO may attach less importance to board age when deciding whether to commit fraud. Therefore, we further propose that the CEO–board directional age difference can weaken the effect of board age. Our empirical analyses provide strong support for these hypotheses. Our study contributes to the literature on corporate governance by highlighting the often neglected roles of board age and CEO–board directional age difference in deterring corporate financial fraud.