The interrelationship between intellectual capital and financial performance: A case study of indonesian insurance companies

This study aims to confirm the interrelationship between intellectual capital and financial performance by examining 9 (nine) public-listed indonesian insurance companies' financial statements from 2009 to 2013. through this,it expects to determine which variables were more influential to intellectual capital and financial performance using secondary,time series,and panel data. based on canonical analysis results,the dominant influence on the financial performance of intellectual capital rather than vice versa. granger causality analysis results indicate that all the variables of intellectual capital and financial performance can be mutually influential. not all variables have a significant influence one with another. the variables that have significant influence among one another is hce to roa,roe to sce,and roa to roe (not vice versa). it shows that for the case of indonesian,insurance company's financial performance has more dominant effect than intellectual capital.