DOI: 10.36347/sjebm.2017.v04i08.011

Pages: 541-547

In this paper, the impacts of liquidity on stock market development in ASEAN – 5 countries are examined. By utilizing the traditional panel estimation comprise of available data from 1990 – 2014,), results of estimation from Fixed Effect Model (FEM) and Random Effects Model (REM) suggested that liquidity is a significant determinant on stock market development in ASEAN – 5. In choosing the most appropriate model, Hausman Test results confirms that REM is more appropriate to be applied. The analysis results also signify that gross domestic product (GDP) and total saving (SAV) are statistically significant at five percent confidence level.