This research was aimed at examing the effect of intellectual capital on
financial performance of the companies. This research also used some
controlled variables namely size and industrial dummy. The samples used in this
research were the companies that intensively utilized the intellectual capital
namely insurance, bank, and funding agency. The hypotesis of this research was
tated using multiple regression. Intellectual capital on the service company
showed the effect towards the financial performance using proxy with ATO, and
Intellectual capital showed no effect on financial performance if using proxy
EBIT. The eksternal size of companies was used in this research to meansure the
intellectual capital namly market-to-book value. Market responded to company;s
performanes that were profitability and productivity of the companies that used
proxy with EBIT and ATO.