Notes: The table presents the 2SLS results of the effect of D&O insurance coverage on stock price crash risk. Dependent variables: NCSK and DUV are the crash risk measures of firm i in year t in Models 1 and 2, respectively. Independent variables: $LNDOˆM$ is the predicted LNDOM of Equation (5) of firm i in year t−1. NCSK1 is the crash risk measure of firm i in year t−1. DUV1 is the crash risk measure of firm i in year t−1. DTurn is the change in monthly share turnover of firm i in year t−1. RET is the average firm-specific weekly return of firm i in year t−1. MTB is the market-to-book-value ratio of firm i in year t−1. SIZE is the natural logarithm of the market value of equity of firm i in year t−1. SIGMAR is calculated as the standard deviation of the firm-specific weekly returns of firm i in year t−1. LEV is calculated as the total long-term debt to total asset ratio of firm i in year t−1. ROA is the return on assets of firm i in year t−1. ABACC is the absolute value of the abnormal accruals of firm i in year t−1. CGIP is the corporate governance index of the firm i in year t−1. Year Fixed Effect is a set of year dummy variables. Industry Fixed Effect is a set of industrial dummy variables. This study applies the Arellano and Bond’s (1991) approach to obtain robust standard errors and then computes the z-values. **,***Significant at the 5 and 1 percent levels, respectively