The Effect of Financial Risk Management on the Performance of Construction Companies Mediated by Efficiency

Authors

  • Sugeng Dwi Hartantyo Faculty Of Civil Engineering and Built Environment, Universiti Tun Hussein Onn Malaysia
  • Sasitharan Nagapan Faculty of Civil Engineering and Built Environment, Universiti Tun Hussein Onn Malaysia
  • Mohd Haziman Wan Ibrahim Faculty of Civil Engineering and Built Environment, Universiti Tun Hussein Onn Malaysia

Keywords:

project performance challenges, risk factors, GAPENSI East Java, Smart PLS

Abstract

The construction industry has unique characteristics compared to other dynamic, multifaceted, complex, multidisciplinary, and expandable industrial sectors. Consequently, these characteristics are accompanied by numerous challenges and issues such as poor construction quality, poor project performance, cost and time overruns, accidents, poor communication, project failures, and other problems. The population in this study consists of construction service companies affiliated with the Indonesian National Construction Contractors Association (GAPENSI) in East Java Province, with a sample of 97 respondents. This research utilized the Smart PLS application. The study results indicate that Interest rate risk, foreign exchange risk, market risk, and liquidity risk do not significantly affect company performance. Credit risk and efficiency affect company performance. Interest rate risk and market risk do not significantly affect efficiency. Foreign exchange risk, credit risk, and liquidity risk significantly affect efficiency.

References

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Published

2026-04-29

Issue

Vol. 15 No. 2 (2026): Volume 15, Issue 2 (2026)

Section

Articles

How to Cite

The Effect of Financial Risk Management on the Performance of Construction Companies Mediated by Efficiency. (2026). International Journal of Academic Research in Progressive Education and Development, 15(2), 437–447. https://ijarped.com/index.php/journal/article/view/4314