As discussed in the chapter,some finance scholars view debt as a means to discipline managers.

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Some finance scholars argue that having debt in a company's capital structure can incentivize managers to make financially responsible decisions and avoid excessive risk-taking, as defaulting on debt payments can have serious consequences for the company's financial and legal standing. This can be seen as a way to discipline managers and align their interests with those of shareholders.

As Discussed in the Chapter,some Finance Scholars View Debt as a Means