| Summary: | The study investigates the link between asymmetric information through market micro-structures and Foreign Direct Investment (FDI) using daily stock prices of listed companies from ASEAN+3 countries. Asymmetric information in the stock market is measured using liquidity and illiquidity measures of Amivest and Amihud, respectively. The findings from static panel regression analysis reveal that Amivest has a positive relationship while Amihud has a negative relationship with FDI. This relationship infers that high stock liquidity reduces price movement, increases transparency, decreases asymmetric information and ultimately encourages FDI, Conjecture has an inverse asymmetric information-FDI relationship. The findings show the importance of policymakers and industry players in stimulating market transparency to welcome foreign investment in the economy. © Penerbit UMT
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