Foreign firms terminate their Securities and Exchange Commission registration in the aftermath of the Sarbanes–Oxley Act (SOX) because they no longer require outside funds to finance growth opportunities. Deregistering firms’ insiders benefit from greater discretion to consume private benefits without having to raise higher cost funds. Foreign firms with more agency problems have worse stock-pr...

We describe a class of non-Markov shot noise processes that can be used as models for rates of return on securities, exchange rate processes and other processes in nance. These are continuous time processes that can exhibit heavy tails that become lighter when sampling interval increases, clustering and long memory.