The purpose of this study is to examine the relationship between corporate governance, namely board independence, board size, and managerial ownership, with firm investment efficiency. Top 200 public listed companies in Malaysia according to market capitalisation from 2009 to 2011 were selected as a sample for the study. Level of investment efficiency was determined based on deviation from expected investment using the investment prediction model as a function of revenue growth. Board independence is measured by proportion of independent non-executive director of the board while board size is based on total number of directors of the board. Managerial ownership was calculated based on percentage of share owned by the executive director over the total number of shares issued by the company. Size of firm was computed based on total assets used as a control variable. Binomial logistic regression analysis was employed to test the hypotheses. The study found that only board size influenced the level of investment of the company, while board independence and managerial ownership prevent inefficiency pertaining to investment decision making. The results confirm the role of corporate governance in enhancing the performance of the company, particularly the role of the board size in protecting the interest of the shareholders.