Nonlinear Diachronic Relationships between Financial Newspapers Circulations and the General Index of the Athens Stocks Exchange

This paper investigates the existence of any linear or non-linear diachronic relationship between the financial newspapers circulations and the General Index of the Athens Stocks Exchange (ASE). We employed a nonlinear version of the Hsiao¢s (1979) linear causality technique in order to test and detect the direction of any possible linear or non-linear causality between these variables. Using daily data of the period 2003-2007 we identified non-linear bi-directional causality between the financial newspapers circulations and the General Index of the Athens Stocks Exchange (ASE).