This study aimed to investigate the relationship between conditional conservatism and investment efficiency. Based on a sample from Egyptian stock market consisting from 115 listed companies (644 observation), the current study examined this relationship. The results found that there is no relationship between conditional conservatism and investment efficiency through the mediation of information asymmetry. However, conditional conservatism, regardless of the mediation of information asymmetry, has shown a positive relationship with under-investment, which meant that it exacerbate this problem. In addition, the study examined the role of conditional conservatism in two frameworks, the first was to test the governance role of conservatism by examining the relationship between the conservatism and investment spending in light of the availability of sufficient internal fund to meet the investment spending, and the results showed the insignificance of this relationship, that is, conservatism in this framework does not play a governance role. As for the lack of sufficient funds to meet the investment spending (the second framework) and the company resorted to the debt market to secure financing for this spending, the results showed a negative relationship between conservatism and investment spending, rejecting the hypothesis of the informational role.