Title: Corporate Strategy and Shareholders Value Creation of Hospitality Firms in Rivers State, Nigeria
Authors: Ogbaka, Anthony Peter and B. Chima OnuohaČ
Volume: 9
Issue: 11
Pages: 138-146
Publication Date: 2025/11/28
Abstract:
This research analysed corporate strategy and shareholder value creation across hospitality enterprises in Rivers State, Nigeria. The study examined three facets of business strategy: market development, product development, and diversification, while also evaluating the moderating influence of corporate governance. A cross-sectional survey design was utilised, and data were gathered from supervisors and managers of 78 hospitality enterprises through a prepared questionnaire. The data were analysed using Spearman's Rank Order Correlation to determine the relationship among the variables. The results demonstrated that market development substantially influences shareholder value creation by expanding client bases, increasing market presence, and augmenting revenue streams. Likewise, product development was found to enhance value generation through innovation, service enhancement, and increased competitiveness. Diversification also had a beneficial effect, as engaging in new company initiatives reduces risk and creates new avenues for income. Furthermore, corporate governance was identified as a moderator between business strategy and shareholder value creation, so underscoring its role in aligning managerial decisions with shareholder interests. The report recommends that hospitality companies diversify into complementary sectors, including tourism, catering, event management, and internet reservation platforms, to enhance shareholder wealth and mitigate risk exposure.