Cross border acquisition is an essential aspect in accessing different international markets. With the rise of Emerging Market Multinationals, cross border acquisition has been their primary vehicle in accessing to those different markets. Motivations and intentions of Emerging Market Multinationals differ from established Market Multinationals in the value of strategic and tacit assets acquired in a cross border acquisition. These assets are effectively transferred when the equity acquired in the host company is significant and is in an established developed economy. This paper examined the relationship of institutional distance based on an economic freedom index between the acquirer’s nation and host nation with the equity participated in the acquisition. Although the outcomes of the analysis are moderately significant, they show a positive relationship between institutional distance and equity participation.