Who Falls Prey to the Wolf of Wall Street? Investor Participation in Market Manipulation

We would like to thank Brad Barber, Joey Engelberg (discussant), Gur Huberman, Alex Imas, Andrei Shleifer, Ahmed Tahoun, Joachim Voth, Tracy Wang, Joshua White and workshop participants at the Burton Accounting Conference at Columbia, Case Western Reserve University, University of Chicago Booth School of Business, European Accounting Association Congress, European Finance Association Annual Meeting, Frankfurt School of Finance & Management, Goethe University Frankfurt, HEC Lausanne, University of Michigan, University of Muenster, NBER Behavioral Finance meeting, Securities and Exchange Commission, Stanford University, Stockholm University, Temple University, and Vienna Graduate School of Finance for their helpful comments. This research would not have been possible without the collaboration of a German bank and we gratefully acknowledge the help provided by the bank and its employees. We thank Sebastian de Schmidt and BaFin for kindly providing data on German tout cases and many helpful conversations about the institutional setting. Christian Leuz gratefully acknowledges financial support by the Initiative on Global Markets. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• online appendix

• November 30, 2017
• June 24, 2021
• April 25, 2022
• January 19, 2023