Geographic location has been an integral part of a company yet it is often disregarded and excluded by the academic and professional alike. A limited study is available regarding the effect of geographic location to corporate behavior. The study aspires to explore the effect of the geographic location to the corporate risk-taking behavior in the U.S. from 1995 to 2017. We categorized geographic location to urban and rural while using stock return volatility and return on asset volatility as the measure for corporate risk-taking. The result suggests that rural firm tend to take lower risk compared to the urban counterpart and also holding a lower cash level. In addition, a high level of cash will enable a firm to take a more risky decision and the rural firm will have an amplified effect of the interaction. The result is consistent with the assumption that under high information asymmetry, the shareholder will pressure the manager to maintain a low level of cash. While a high cash level will enable firms to capture more investment opportunity and taking more risk.

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