Purpose – The purpose of this study is to examine how institutional distance impacts unrealized cross-border mergers and acquisitions (CBMAs) deals of firms from China and Russia after they have been rumored. Prior research on CBMAs has acknowledged that only a small percentage of all evaluated target firms are acquired. Using institutional distance theory, the authors contribute to the research literature by examining the institutional distance relating to the regulative, normative and cognitive institutional distance between China and Russia and their respective host countries to identify the determinants of unrealized CBMA deals after they have been rumored. Design/methodology/approach – The authors test hypotheses using data on CBMA rumors by examining a sample of CBMA deals by Chinese and Russian multinational enterprises from January 2003 to December 2019. Findings – For Russia and China, rumored deals are less likely to remain unrealized in host countries with higher business and investment freedom than in the acquiring country (China or Russia). Rumored deals are less likely to be unrealized in host countries with lower corruption levels than in the acquiring country. Greater cultural distance between the home and host countries increases the likelihood of unrealized deals. Originality/value – The authors make a unique contribution to the literature, as no prior studies have investigated the influence of institutional distance on unrealized rumored CBMA deals, particularly in the comparison of Chinese and Russian multinational enterprises.