Why would financial analysts be fooled by accounting numbers and provide optimistic and biased estimates of profits?

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Why would financial analysts be fooled by accounting numbers and provide optimistic and biased estimates of profits? Can you offer a positive economic reason for their actions?

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Accounting Theory

ISBN: 9780470818152

7th Edition

Authors: Jayne Godfrey, Ann Tarca, Allan Hodgson, Jane Hamilton, Scott Holmes

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