| Summary: | The relation between goodwill impairment and the firms’ underlying investment opportunities is investigated in this dissertation. The accounting precedure analogue and investment opportunities have been studied by many researchers, however, after the adoption of IFRS regime in European Union, there is no study in UK area. The results of this study of 205 observations of 152 United Kingdom firms over 2005-2007 show that firms with high investment opportunities are less likely to write- off their goodwill impairment losses in pooled sample. However, unlike the research conducted by Godfrey and Koh (2009), this dissertation shows something new in UK empirical research. In 2006, investment opportunites do not have any explanlatory power in goodwill impairments. This can due to many reasons, maybe the sample size is relatively small because a lot of UK firms does not reported their impaired goodwill, maybe the model is not well interpreted or maybe the proxies selected could not reflect for UK firms’ underlying value. Besides, other control variables such firm size, leverage, return on assets and stock return are adopted in the regression model. Among them, firm size has powerful explanation.
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