This study aims to empirically investigate how Treasury Stock holdings and retirements impact on firm value, through information asymmetry perspective. Information asymmetry is considered one of the market frictions in an incomplete market. By controlling for variables that can trigger the agency problem, another market friction, we conduct an empirical analysis to shed light on this relationship. The findings indicate that incresing treasury stock holdings lead to an increase in information asymmetry, as measured by the average spread rate. Conversely, stock retirements have a mitigating effect on information asymmetry. These results are robust and consistent with a robustness test conducted using adverse selection costs as measures of information asymmetry variables.