Earnings per share is a poor indicator of performance

One of the greatest dangers in corporate financial planning is failing to separate investment decision making from financial policy, because poor quality investments can appear to be desirable as a result of the particular financing vehicle employed. Management's focus of attention should not be rates of growth and earnings per share or return on net worth. Rather, the most important measure of corporate performance is the rate of return on total capital employed. The paper identifies the dangers of employing an earnings per share criterion for evaluating corporate performance, and suggests an alternative: focusing on a company's free cash flow, net operating profits after taxes minus the amount of new capital investment required in order to generate future profits. The author presents an analytical framework employing his free cash flow concept which can be applied to pricing and financing acquisitions.     

Questioning the reliability of market segmentation techniques

Market segmentation techniques and analyses have received considerable attention in the academic literature. This paper compares and contrasts the results from conducting cluster analysis and factor analysis on two data sets, one which is genuine and the other which has been randomly generated. This analysis helps test claims about the validity and effectiveness of such techniques and looks at the reliability of the output. The findings suggest that researchers need to be careful to carry out valid preliminary work before presenting their results. Without such preliminary work it may be difficult to justify the segments which emerge.     

Responsible mothers and normal children: eugenics, nationalism, and welfare in post-revolutionary Mexico, 1920-1940

This article examines the emergence of the eugenics movement in Mexico during the 1920s and 1930s and explores the ways in which eugenicists and physicians participated in the creation of a new paternal order focused on motherhood, sexuality, and child welfare. I analyze this transformation as part of a broader process of medicalization and state expansion that recast understandings of reproduction, heredity, childhood, and the female body during the post-revolutionary period. I argue that eugenics, and the related puericulture movement, played a critical role in the emergence of novel forms of governmentality, the nationalization of women, and the neutralization of anterior forms of patriarchy in modern Mexico. The article contributes to a growing body of scholarship on the meaning of motherhood, the standardization of elementary school education, and the formation of welfare states in Latin America.     

Letter to the Editor: A reply to Zipp and Fenwick

March 2007 In the Fall 2006 issue of Public Opinion Quarterly, John F.Zipp and Rudy Fenwick published "Is the Academy a Liberal Hegemony?,"an article openly framed as a reaction to "right-wing activistsand scholars" (304). The scholarship they cite is principallyours (Klein and Stern 2005a; Klein and Western 2005). They arriveat findings about ideological ratios said to be "far lower thanthe ratios found by Klein ..." (309). Unfortunately, ZF misrepresent us. We wrote and submitted afull reply, but the Editor Peter Miller asked us to keep to     

Gender, Values, and Environmentalism

Objective . The social psychological values altruism, self-interest, traditionalism, and openness to change are key correlates of environmental concern and proenvironmental behavior. We investigate the relationship between gender and these values to better understand gender differences in environmentalism. We consider both gender differences in value priorities (differences in mean response on value scales) and differences in the meaning of values (differences in the factor structure of values) as well. Methods . Our analysis is based on data from a random-digit dialed national telephone survey of U.S. adults conducted in 1994. We examine differences in factor structure of values for a group of 145 white men and 200 white women using confirmatory factor analysis and differences in mean value scores using multivariate analysis of variance. Results . We find no substantial differences in value factor structure, but differences in value priorities, with women ranking altruism as more important than men. Conclusions . Our analysis supports work that focuses on mean differences in environmentalism across genders without examining gender differences in factor structure, although further examination of gender differences in factor structure is warranted. Our results also highlight the importance of gender differences in altruism as a basis for gender differences in environmentalism.     

Understanding Condom Use Decision Making Among Homeless Youth Using Event-Level Data

This is one of the first qualitative event-based studies to understand the various mechanisms through which multiple factors influence condom use decision making among homeless youth. Event-level interviews that explore characteristics of the environment surrounding sexual events were conducted with 29 youth who were asked to describe two recent sexual encounters. In thematic analyses of data across events, reasons that youth gave for engaging in unprotected sex included the expectation of having sex and use of alternative methods of protection against pregnancy. Other nonevent factors that influenced condom use decision making were related to attributes of the partnership (e.g., testing, trust and love, and assessments of risk) and attributes of the youth (e.g., perceptions of diseases, concerns over pregnancy, and discomfort using condoms). Additional event analyses conducted within the same individuals found that decision making was influenced by multiple interacting factors, with different pathways operating for event and nonevent factors. Future interventions should consider taking a multilevel and individualized approach that focuses on event-based determinants of risky sex in this population.     

Characterizing Emotional Support Development: From Adolescent Best Friendships to Young Adult Romantic Relationships

This study examined development of emotional support competence within close friendships across adolescence. A sample of 184 adolescents (53% girls, 47% boys; 58% White, 29% Black, 14% other identity groups) participated in seven waves of multimethod assessments with their best friends and romantic partners from age 13 to 24. Latent change score models identified coupled predictions over time from emotional support competence to increasing friendship quality and decreasing support received from friends. Friend-rated emotional support competence in adolescence predicted supportiveness in adult romantic relationships, over and above supportiveness in adolescent romantic relationships. Teen friendships may set the stage for developing emotional support capacities that progress across time and relationships into adulthood.