Corporate risk-taking under exogenous shocks: Covid-19 vs. financial crisis

Puntos clave

• Risk-taking behavior varied significantly between Covid-19 and the financial crisis.
• During the financial crisis, firms reduced risk-taking by 34%, compared to only 15% during Covid-19.
• Analysis of corporate behavior across multiple industries was conducted to understand these impacts.
• Findings may enable companies to better prepare for future exogenous shocks.