Why? What is the correlation between profit and shareholder sentiment (besides the fact that shareholders want said profits)? They don't really influence the operation of the business meaningfully.
Sure, but I think it's the wrong way around. Appeasing shareholders doesn't make you profitable, being profitable appeases shareholders. I think there is a wealth of evidence that appeasing shareholders actually impedes profits overall.
Incorrect. They need to appease/trick/threaten/etc those that are paying for their services. Shareholders just demand they do so at the greatest (often short term) rate.