This paper employs a three period overlapping generations' model to investigate (i) the labor supply effects of the linkage between the benefits of a pay-as-you-go social security program and the payroll taxes that finance them and (ii) the nature of the optimal linkage. The main result of the paper is that, for a given statuary tax rate, the weights that must be placed on earnings of different periods (in benefit calculation) depend on population and productivity growth rates only. This result implies that the optimal net tax rates are not uniform over the life cycle unless the economy is on its steady state golden rule path. Moreover, if the economy is on the golden rule path, the optimal net tax rates are not only uniform but also zero. The paper also demonstrates that, if preferences are additively separable, as more weight is placed on earnings when young labor supply by the young increases while labor supply by the middle-aged decreases.

Using a cross-sectional sample of 94 medium to large-sized manufacturing organisations in Iran, this study utilised cluster, regression, and gap analyses to study the relationships among extent of use, predictive value, and information availability for 63 performance measures. Based on the results, it appears that the studied Iranian manufacturing organisations do not overemphasise financial measures at the expense of other important performance measures related to the competitive, strategic environment, operational efficiency, and the human resource development. The Iranian executives appear to overlook the innovation aspects of organisational performance. The implications of this research are highlighted in relation to the findings and the conclusions. The conceptual framework in Figure 1 is offered for future research, which deals with performance management and its interaction with the economic and cultural facets.

Purpose – Leveraged exchange traded funds (ETFs) have become increasingly popular since their introduction in 2006. In recent years, options on leveraged ETFs have been promoted as a means of enhancing returns and reducing risk. The purpose of this paper is to examine the interchangeability of S&P 500 ETF options with leveraged S&P 500 ETF options and to what extent these options allow investors to manage their risk exposure. Design/methodology/approach – With increasing liquidity for these fund’s options, simple option strategies such as covered calls and protective puts can be implemented. This study derives call-call and put-put parity between options on the underlying index and the associated leveraged ETFs. The paper examines comparative measures of return and risk on the underlying indices, along with covered call and protective put positions. Findings – Using the formulations derived, this study shows options on non-leveraged ETFs or on the underlying index can be substituted for leveraged ETF options. Empirical results suggest substituting options on leveraged ETFs with options on the underlying index or index ETF give comparable results, but can differ as the realized leverage ratio over time differs from projected values. Originality/value – This study is the first to the authors’ knowledge that investigates option strategies on leveraged and inverse ETFs of equity indices. It is also the first to derive call-call and put-put parity relations between options on ETFs and related leveraged and inverse ETFs. The results contribute to securities issuance, investment strategies, and option parity relations.

Purpose – The purpose of this study is twofold. First, the relevant literature is reviewed briefly to provide a strategic context of the different views on strategy development. In the process, the linkages between the e-commerce view of strategy and previous views are explored. As such, the perspectives of different schools of thought on strategy are briefly highlighted. Second, the different dimensions of the e-commerce strategy and their impact on organizational performance are investigated. Design/methodology/approach – Asurvey integrating different theoretical views of value creation was developed and sent to Portuguese e-commerce firms to assess the underlying dimensions of their strategies through factorial analysis. Then, a clustering analysis was performed to determine strategic groups to compare corporate performance. Findings – Three e-commerce dimensions were identified: marketing, innovation and efficiency. Results of data analysis suggest that differentiation factors have impact on corporate performance in the context of virtual markets. Research limitations/implications – Although the Portuguese specific nature of the study could be seen as a limitation of the generalization of the findings, in the authors’ view, it is not truly a limitation because Portuguese executives face the same challenges that other countries counterparts, due to the universal application of e-commerce. Moreover, the use of a Portuguese sample validates findings from other cultural settings, contributing toward a unified theory and testing its applicability. In this way, it is an opportunity rather then a limitation. Practical implications – The research identifies what is strategic and highlights the competitive methods that enhance differentiation in virtual markets, which could be useful as a framework for strategic formulation. Moreover, it provides a theoretical rational for investments in intangible assets. Originality/value – The development of a survey to assess e-commerce strategies and the identification of the e-commerce strategic dimensions are the main contributions of this research, which highlights the importance of differentiation factors in virtual markets.

This article examines predictors of the future market value of microcap pharmaceutical companies. This is problematic since the large majority of these firms seldom report positive net income. Their value comes from the potential of a liquidity event such as occurs when a key drug is approved by the FDA. The typical scenario is one in which the company is either acquired by a larger pharmaceutical firm or enters into a joint venture with another pharmaceutical firm. Binary logistic regression is used to determine the impact of the firm's drug treatment pipeline and its investment in research and development on the firm's market cap. Using annual financial data from 2007 through 2010, this study finds that the status of the firm's drug treatment pipeline and its research and development expenses are significant predictors of the firm's future stock value relative to other microcap pharmaceutical firms.

This research examines the rate of implementation and the level of effectiveness of six process management initiatives in four manufacturing industries. The results of this survey-based research indicate that there has not been a mad rush to adopt all available initiatives. Rather, individual industries appear to favour different mixes of these initiatives. Moreover, most of the respondents indicated that the initiatives that they had chosen were effective in meeting their operational and strategic needs. This study concludes by presenting specific conclusions relevant to manufacturing systems in the studied industries.

Purpose – The purpose of this paper is to shed some light on the utilization of quality improvement initiatives in healthcare operational environments. In the process, environmental changes and strategic responses are examined for a sample of healthcare organizations. Design/methodology/approach – A survey-based research methodology is utilized in this study. Factor analysis is used to extract relevant factors representing environmental changes and strategic options relevant to healthcare organizations. In addition, simple percentages are utilized to assess the extent of implementation and effectiveness of quality improvement initiatives. Findings – In general, the findings appear to indicate that the studied organizations have achieved both operational and strategic benefits due to the effective implementation of quality improvement initiatives. The implementation of quality improvement initiatives appears to be in response to environmental changes and challenges faced by healthcare organizations. Practical implications – Based on the findings of this study, decision-makers are encouraged to commit organizational resources toward the effective implementation of quality improvement initiatives. Investing in quality improvement not only is justified, but also appears to be very much needed in a changing competitive environment. Originality/value – This study contributes to enhancing one's practical and theoretical understanding of the competitive impact of quality improvement initiatives in different operational settings.

Purpose – This research attempts to shed some light on Palestinian executives and their organizational culture. Specifically, this research focuses on the dimensions of executive courage in the unique Palestinian culture. The impact of executive courage on Palestinian organizations is emphasized. Design/methodology/approach – This research is survey-based. The research instrument utilized in this study was also used in other cultural settings. Content analysis and factor analysis were used to analyze the data collected from a sample of 40 Palestinian executives. Findings – The results underscore the significance of making tough decisions on behalf of the organization, as an important dimension of the multi-dimensional executive courage construct. The results of this study clearly show the positive impact of executive courage on organizational culture of Palestinian organizations. Practical implications – The findings of this research are relevant to Palestinian executives and those executives seeking to engage in joint-ventures with them. Originality/value – This research represents rare insight into the Palestinian organizational culture. In the process, the practices of the Palestinian executives with regard to executive courage and its impact on organizations are examined.

Companies that advertise during the Super Bowl can reach 40 million U.S. households with a 30-second commercial spot, but the cost can exceed $2 million. This research examines Nielsen television ratings and expenses for related commercial spots and suggests that the Super Bowl is not always the best site for introducing new companies or products to the marketplace. ANOVA test results indicate that younger companies may better affect purchase decisions by advertising more frequently during less expensive programming slots.

The literature clearly indicates that service organizations are lagging behind their manufacturing counterparts in terms of the effective deployment of total quality management (TQM) practices aimed at achieving operational and strategic objectives. The objective of this study is to shed some light on the current TQM practices of service organizations. In general, the results of this study appear to confirm the reported literature findings concerning outcomes and benefits of effective TQM implementation. More importantly, the results underscore the differences in TQM implementation practices and benefits due to some industry-specific factors. The lack of commitment to TQM implementation on the part of high percentage of the surveyed service organizations in this study is alarming.