Beschreibung:
Article 464 of the Civil Code endows marriage with a contractual nature, while material asset reorganizations (MARs) are also business activities with contractual relationships. We investigate how the institutional distance of marriage contract between the two parties' locations affects corporate MARs from the perspective of cultural values and trust embedded in marriage contract institution. By examining MARs of listed companies between 2008 and 2019, we find that the institutional distance of marriage contract inhibits inter-regional MARs, resulting in a reduced probability, frequency, and transaction scale of MARs. Regarding MARs performance, the larger the institutional distance of marriage contract, the higher the probability of MARs failure. This impact varies due to differences in managerial, corporate, and regional characteristics. Factors such as the credit level and MARs experience of listed companies also affect the role of the institutional distance of marriage contract. This study enriches the research on the economic impact of institutional distance, and the findings bear practical and economic significance for listed companies in terms of selecting MARs targets, reducing time costs, and enhancing the success rate of MARs