When a bankruptcy is imminent, employees and external creditors are likely to be least informed about the

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When a bankruptcy is imminent, employees and external creditors are likely to be least informed about the same. This may lead to a situation where managers transfer as much cash and assets out of the firm as possible to protect shareholders’ interest, while undermining the interest of other stakeholders like creditors and employees. How can a CEO act ethically toward these two groups of stakeholders in the time before, during, and after the bankruptcy period?

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Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

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