I recently asked Should retail investors learn and use the capital asset pricing model (CAPM)?, where a good answer mentioned that "beta" is a rough measure of risk, measured based on the price sensitivity of a stock relative to the underlying market.
I am not worried about price volatility. I am only concerned about bankruptcies and permanent impairments of value. Is there research that indicates a correlation between beta and bankruptcy? (I am not knowledgeable enough to read research papers in finance, hence my question.) Theoretically and empirically, if a stock has a high beta, does it mean that there is a higher chance of bankruptcy? If not, why should I care about betas?