Why do investors spend so much time

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Reference no: EM131276057

1. If a company's value is not driven by its short-term earnings, why do investors spend so much time analyzing a company's annual or even quarterly earnings announcements?

2. Empirical research shows that goodwill impairments have no impact on a company's share price. But these impairments do reflect an auditor's best estimate of the value lost in an acquisition by the company. Does the stock market not care about such losses? Explain.

Reference no: EM131276057

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