Abstract: By using 668 cross-border mergers and acquisitions ( M&As) cases which occurred among 47economic entities during 2008 to 2015 as samples, an empirical research is made on the impact of cultural distance and institutional distance on the performance of companies in cross-border M&As. The results are as follows: individualistic dimension plays a significant negative impact on the performance of cross-border M&As; power distance dimension has a significant positive impact on the performance of cross-border M&As; economic competitiveness plays a significant positive impact on the performance of cross-border M&As; and the asset-liability ratio of the main M&A party plays a significant positive impact on the performance of cross-border M&As. The purpose of cross-border MA lies not only in the scale expansion, but also the promotion of benefits. Cultural distance and institutional distances provide enlightenments to development of"the Belt and Road Initiative". Therefore, in order to improve the efficiency of cross-border M&A, it is necessary to conform to different cultural distance dimensions and avoid the offset effect caused by the consolidation of cultural distance with the same orientations. The countries and regions along"the Belt and Road"should make an endeavor to enhance cultural communication, and release the promotion function of cultural distance and institutional soft environment on the cross-border investment．
Key words: Cross-border M&As; Cultural Distance; Institutional Distance; The Belt and Road Initiative