This paper aims to study the four dimensions，namely the system of cultural distance，geographic distance，institutional distance and economic distance，which affect the entry mode of overseas M&A equity.The results show that there is negative correlation between institutional distance，geographic distance and economic distance and foreign owned enterprise model.While the culture distance has a U-shaped impact on the mode of M&A equity，that is，companies prefer to take sole pattern when the cultural distance is smaller or higher，and joint venture model tend to be adopted when the cultural distance is moderate.Research conclusion of this paper clarifies the misunderstanding of traditional theory，clears the relationship between the variables and enriches the connotation of entry mode of M&A equity.