<p>This paper examines the impact of monetary policy on corporate risk-taking. Using a panel dataset of non-financial listed firms in Vietnam from 2007 to 2023, we find that expansionary monetary policy, characterized by decreased interest rates and increased liquidity, is associated with higher corporate risk-taking. Robustness checks using alternative risk-taking and monetary policy measures, subsample analyses, and instrumental variable regressions confirm this core impact. Channel analysis highlights the critical role of financing conditions, showing that firms take on more risk when easing monetary policy causes firms to have more debt financing and reduce financing constraints. Further, our heterogeneity tests reveal that firms with strong yield-seeking incentives amplify the effects of monetary policy, while those with high precautionary savings respond less to monetary adjustments. Additionally, the risk-taking behaviors of firms with higher bank debt ratios or longer debt maturities exhibit weaker responses to monetary shocks. We also find that the COVID-19 pandemic dampens and reverses the relationship between monetary policy and risk-taking.</p>