The article discusses how corporate diversification can affect a company's value and performance, especially in emerging markets like Russia. Diversification can be beneficial, but it also leads to challenges in planning and budgeting different business areas. This can create problems in corporate governance, where managers and stakeholders may not always align. In Russia, there is a growing focus on improving corporate governance to attract foreign investors, but many companies still struggle to implement proper governance principles. Research shows that there is not enough evidence to prove a direct positive impact of corporate governance on company effectiveness in Russian companies.