The author thanks Brian Bushee (department editor), an anonymous associate editor, and two anonymous referees for helpful feedback. This paper has also benefited from the suggestions of Daniela Barth (former FREP enforcement staff), Hans-Joachim Böcking (former member of the FREP’s advisory board), Edgar Ernst (the FREP’s former Head of Enforcement), Marius Gros, Paul Healy, Christian Leuz, Gerardo Pérez-Cavazos, Caspar David Peter, Karthik Ramanna, Thorsten Sellhorn, Eugene Soltes, Marion Weckes, and seminar participants at Baruch College, Goethe University Frankfurt, Ludwig Maximilian University Munich, the University of Chicago, and the University of Mannheim. The author also thanks Jipeng Liu for excellent research assistance.