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

The authors 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 the authors gratefully acknowledge the help provided by the bank and its employees. The authors thank Sebastian de Schmidt and BaFin for kindly providing data on German tout cases and many helpful conversations about the institutional setting.