Using a sample of Chinese A-share listed firms from 2006 to 2021, this study investigates the effects of risk-taking on corporate option values based on real options theory. Empirical results demonstrate that high-risk strategies significantly increase (reduce) growth (liquidation) option values during periods of favorable (poor) performance. Mechanism analysis reveals that risk-taking enhances (reduces) growth (liquidation) option values by improving (weakening) the sensitivity of investment to opportunities. Further analyses show that the positive (negative) impact of risk-taking on growth (liquidation) option value is more pronounced among firms with high performance growth potential (high performance downside risk), with the latter diminishing firms’ overall value. In addition, the advanced enterprise risk management systems can strengthen (attenuate) the positive (negative) impacts of risk-taking on growth (liquidation) option values.