The Testing of the Reliability and Validity of Accounting and Financial Skills Measures: An Empirical Evidence of Thai Dairy Farm Entrepreneurs


  • Subin Putsom Asia-Pacific International University


Accounting skill, Financial skill, diary farm businesses


Despite the dissimilarity and diversity of management functional skills, especially accounting and financial skills in modern entrepreneurs, there is a lack of acceptably valid and reliable accounting and financial skills assessment scales. This study measures the reliability and constructs validity of an accounting and financial measurement scale created based on existing measures of accounting skills and financial skills. The data was gathered from 240 entrepreneurs from dairy farm businesses in Thailand by using questionnaires. The results from an exploratory factor analysis (EFA) demonstrated significantly better reliability and factor stability for the revised scale in comparison to existing instruments. Based on these results, both scales appear to be a reasonably reliable and valid instrument for the measurement of accounting and financial skills, competencies, and capabilities. The implications of the findings are discussed in the development of accounting and financial skill factors and future research.


Adegite, E. O. (2010). Accounting, accountability and national development. Nigerian Accountant, 43(1), 56-64.

Agbiogwu, A. (2010). Accounting skills necessary for successful entrepreneurship. International Journal of Vocational Studies CCSP, 1(1), 1-10.

Ahmed, K., & Zabri, S. M. (2012). The Uptake of Management Accounting Practices among Malaysian Firms in SMEs Sector. In International Conference on Technology Management, Business and Entrepreneurship, Malaysia. Retrieved July 30, 2019 from my/3437.

Ajibolade, S. O. (2008). A Survey of the Perception of Ethical Behaviour of Future Nigerian Accounting Professionals. The Nigerian Accountant, 43(3), 54-59.

Al-Sharafat, A. (2017). The Impact of Human Capital Development on the Financial Performance of Agricultural Enterprises: Application on Broiler Industry. International Journal of Business and Social Science, 8(3).179-186.

Allen, A., & Sanders, G. D. (1994). Financial disclosure in US municipalities: has the governmental accounting standards board made a difference?. Financial Accountability & Management, 10(3), 175-193.

Akande, O. O. (2011). Accounting skill as a performance factor for small businesses in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 2(5), 372-378.

Argilés, J. M., & Slof, E. J. (2001). New opportunities for farm accounting. European Accounting Review, 10(2), 361-383.

Baliyan, S. P., & Marumo, D. S. (2016). Analysis of farm management skills in small scale broiler poultry producers in Botswana. International Journal of Agricultural Economics and Extension. 4(2), 215-223.

Bart, D. (2006). Integrating local ecological knowledge and manipulative experiments to find the causes of environmental change. Frontiers in Ecology and the Environment, 4(10), 541-546.

Beal, D., & Delpachitra, S. (2003). Financial literacy among Australian university students. Economic Papers: A journal of applied economics and policy, 22(1), 65-78.

Brown , B. J. & Clow, K, W. (1992). Introduction to business our business and economic world, California: McGraw Hills.

Carson, D., & Gilmore, A. (2000). SME marketing management competencies. International Business Review, 9(3), 363-382.

Chia, R. (1996). Teaching paradigm shifting in management education: University business schools and the entrepreneurial imagination. Journal of Management Studies, 33(4), 409-428.

Cho, E., & Kim, S. (2015). Cronbach’s coefficient alpha: Well-known but poorly understood. Organizational Research Methods, 18(2), 207-230.

Choi, K., & Seltzer, M. (2010). Modeling Heterogeneity in Relationships between Initial Status and Rates of Change: Treating Latent Variable Regression Coefficients as Random Coefficients in a Three-Level Hierarchical Model. Journal of Educational and Behavioral Statistics, 35(1), 54–91.

Crane, L. M., & Leatham, D. J. (1995). External equity financing in agriculture via profit and loss sharing contracts: a proposed financial innovation. Agribusiness, 11(3), 223-233.

Dairy Development Program. (2018). Situation in World and Thailand Dairy. Retrieved July 20, 2019 from

Deakins, D., & Freel, M. S. (2009). Entrepreneurship and small firms. McGraw-Hill College.

Department of Livestock Development. (2017). Number of livestock in Thailand: Year 2017. Retrieved July 20, 2019 from

Diamantopoulos, A., Siguaw, J., & Siguaw, J. A. (2000). Introducing LISREL: A guide for the uninitiated. Introducing LISREL: A guide for the uninitiated. London.

Dyt, R., & Halabi, A. K. (2007). Empirical evidence examining the accounting information systems and accounting reports of small and micro business in Australia. Small Enterprise Research, 15(2), 1-9.

Egbe, B. O. (2015). Analysis of farm management skills of poultry production operators in Ebonyi State. Journal of Educational Policy and Entrepreneurial Research, 2(1), 29-33.

Evbodaghe, J. I. (2009). Global trends in the accountancy profession. The Nigerian Accountant, 42(4), 36-47.

Garcia, P. Sonka, S.T. and Mazzacco, M.A. (1983). A Multivariate Logit Analysis of Farmers' Use of Financial Information. American Journal of Agricultural Economics, 65(1) 136-141.

Gibson, D. A. (2004). Hotel controllers in the 21st century—a Hong Kong perspective on desired attributes. International Journal of Hospitality Management, 23(5), 485-503.

Gloy, B. A., & LaDue, E. L. (2003). Financial management practices and farm profitability. Agricultural Finance Review, 63(2), 157-174.

Graham, I. C., & Harris, P. J. (1999). Development of a profit planning framework in an international hotel chain: a case study. International Journal of Contemporary Hospitality Management, 11(5), 198-208.

Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121.

Harrington, D. (2009). Confirmatory factor analysis. Oxford University Press.

Harper, S., Brown, C., & Irvine, W. (2005). Qualifications: a fast-track to hotel general manager?. International Journal of Contemporary Hospitality Management, 17(1), 51-64.

Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resources management effectiveness as determinants of firm performance. Academy of Management Journal, 40(1), 171-188.

Indeed Career Guide. (2021). Finance Skills: Definition and Examples. Retrieved March 27, 2021 from

Jackson-Smith, D., Trechter, D., & Splett, N. (2004). The contribution of financial management training and knowledge to dairy farm financial performance. Review of Agricultural Economics, 26(1), 132-147.

Johannisson, B., & Mønsted, M. (1997). Contextualizing entrepreneurial networking: The case of Scandinavia. International Studies of Management & Organization, 27(3), 109-136.

Kay, C., & Moncarz, E. (2004). Knowledge, skills, and abilities for lodging management. Cornell Hotel and Restaurant Administration Quarterly, 45(3), 285-298.

Kline, R. B. (2005). Principles and Practice of Structural Equation Modeling. New York: The Guilford Press.

Littlejohn, D., & Watson, S. (2004). Developing graduate managers for hospitality and tourism. International Journal of Contemporary Hospitality Management, 16(7), 408-414.

Lussier, R. N. (1996). Reasons why small businesses fail: and how to avoid failure. The Entrepreneurial Executive, 1(2), 10-17.

Mäkinen, H. (2013). Farmers’ managerial thinking and management process effectiveness as factors of financial success on Finnish dairy farms. Agricultural and Food Science, 22(4), 452-465.

Marriott, N. (2004). Using computerized business simulations and spreadsheet models in accounting education: a case study. Accounting Education, 13(sup1), 55-70.

McDonald, R. P. (2014). Factor analysis and related methods. Psychology Press.

McMahon, R. G. (2001). Business growth and performance and the financial reporting practices of Australian manufacturing SMEs. Journal of Small Business Management, 39(2), 152-164.

Mishra, A. K., & Morehart, M. J. (2001). Factors affecting returns to labor and management on US dairy farms. Agricultural Finance Review. 61(2), 123-140.

Moore, D. S., Notz, W., & Fligner, M. A. (2013). The basic practice of statistics. WH Freeman.

Mundfrom, D. J., Shaw, D. G., & Ke, T. L. (2005). Minimum sample size recommendations for conducting factor analyses. International Journal of Testing, 5(2), 159-168.

Nunnally, J.C. & Bernstein, I. H. (1994). Psychometric Theory. New York: McGraw-Hill.

Philpot, J., Hearth, D., & Rimbey, J. (2000). Performance persistence and management skill in nonconventional bond mutual funds. Financial Services Review, 9(3), 247-258.

Poppe, K.J. (1991). Information needs and accounting in agriculture. Agricultural Economics Research Institute LEI, 444, 1-51.

Raybould, M., & Wilkins, H. (2005). Over qualified and under experienced: Turning graduates into hospitality managers. International Journal of Contemporary Hospitality Management, 17(3), 203-216.

Salam, M. A., & Hasan, K. (2020). Generic Skills Gap in Curricula: Are Thai Accounting Graduates Ready for the Contemporary Workplace? St. Theresa Journal of Humanities and Social Sciences, 6(2), 80-96.

Shanker, S. (2010). Accounting Skill & Abilities. Retrieved March 10, 2020 from

Sharma, K., Karuppanchetty, S., & Aravazhi, S. (2012). Developing entrepreneurs through an agribusiness incubator at ICRISAT. World Bank Agricultural Innovation Systems: An Investment Sourcebook, 421-425.

Streeter, D. H. (1992). Electronic information systems and farmer decision-making five case studies. European Review of Agricultural Economics, 19(1), 97-113.

Stonefield, N. (1999). Confirmatory factor analysis of the Personal Orientation Inventory (POI).

Subramaniam, N., McManus, L., & Mia, L. (2002). Enhancing hotel managers’ organizational commitment: an investigation of the impact of structure, need for achievement and participative budgeting. International Journal of Hospitality Management, 21(4), 303-320.

Tabachnick, B. G., & Fidell, L. S. (2001). Principal components and factor analysis. Using Multivariate Statistics, 4, 582–633.

Taylor, S. M., & Wagland, S. (2013). The solution to the financial literacy problem: what is the answer? Australasian Accounting, Business and Finance Journal, 7(3), 69-90.

Turner, R. C., & Carlson, L. (2003). Indexes of item-objective congruence for multidimensional items. International Journal of Testing, 3(2), 163-171.

Warne, R. T., & Larsen, R. (2014). Evaluating a proposed modification of the Guttman rule for determining the number of factors in exploratory factor analysis. Psychological Test and Assessment Modelling, 56(1), 104–123.

Wong, C. S., & Law, K. S. (2002). The effects of leader and follower emotional intelligence on performance and attitude: An exploratory study. Leadership Quarterly, 13(3), 243–274.

Undutimi, J. D. (2013). Record Keeping Among Small Farmers in Nigeria: Problems and Prospects. International Journal of Scientific Research in Education, 6(2), 214-220.

Yaaghubi, A., Chizari, M., Pezshkirad, G., & Foeli, S. (2009). Importance of farm management skills from the viewpoint of Wheat farmers in Tafresh Township. Journal of Agricultural Economic and Development, 17(66), 99-114.

Zaman, M., & Gadenne, D. (2002). A model for best financial and cost accounting practices in SMEs: an exploratory study. Small Enterprise Research, 10(1), 15-31.

Zikmund, W. G. (2003). Business Research Methods / William G. Zikmund. South-Western Publishing.