Abstract

This paper explores the relationship between the acquired proportions of equity, Chinese multinational enterprises’ choice and various institutional distances namely, the government and the judicial system distance, economic distance and management distance. This paper uses 554 cases of Chinese companies' cross-border acquisitions from 2010-2019.These cases were collected by Zephyr database. This paper concludes that when Chinese companies enter an unfamiliar market, as the government and the judicial system difference expands, the Chinese companies choose to acquire a higher proportion of the targets; However, as the difference in economic system expands, Chinese multinational companies reduce the proportion of equity; The management distance effect for Chinese companies' cross-border acquisitions on share ownership is not obvious.