authors
Rajwanti

abstract
The correlation analysis has been used in order to examine the relationship between intellectual capital and financial performance of the firms. Intellectual capital has been measured by Modified Value Added Intellectual Coefficient (MVAIC). Return on Assets (ROA) and Return on Equity (ROE) have been used to measure financial performance of the firms. The Pearson correlation has been applied in the study. The study found that intellectual capital efficiency and financial performance (ROA) have a significant relationship but not significantly related with Return on Equity (ROE). The results indicate that CEE has a significant positive relationship with ROA and ROE and age but significant negative relationship with size (TA) and leverage (DER). HCE is observed to have a significant negative relationship with ROA, and age but showing significant positive relationship with size (TA) and leverage (DER). SCE has a significant positive relationship with ROA, ROE, size (TA) and leverage (DER) but a significant negative association with the age of the company. RCE shows an insignificant negative relationship with ROA and ROE but a significant relationship with size (TA), age, and leverage (DER). The study also used the Modified Value Added Intellectual Coefficient (MVAIC) model to measure intellectual capital efficiency by adding an intellectual capital component called relational capital efficiency.