| Summary: | This study analyzes the impact of private and public order institutions on the provision of trade credit in Russia. It shows, ceteris paribus, that managers‘ perception of their own ability to use legal terminology and their perception of lawyers‘ effectiveness in the solution of commercial conflicts have a significant impact on the provision of trade credit to clients. The perception of the effectiveness of commercial courts and law enforcement has little or no impact at all on the provision of trade credit. 246 managers in three towns in northwest Russia participated in the survey. The results propose that internal legal determinants in the form of legal consciousness better explain provision of trade credit than do external legal determinants in contrast to current theory. This observation suggest that human legal capital has unexploited potential for explaining financial transactional behaviour.
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