Abstract: The purpose of this paper is to study the influence of various corporate characteristics on the capital structure of Italian Small and Medium-sized Enterprises (SMEs). Based on the literature review about the capital structure decisions, this study investigated the relationships between the main determinants: size, profitability, asset structure, growth, earnings volatility and age. Panel regressions with fixed-effects are used to estimate the influence of SME firm determinants on three capital structure measures, total, long-term and short-term debt. The global sample is made up of 854 SMEs and covers the period between 2010 and 2015. Overall, the results suggest that most of the variables used are reliable in explaining Italian SME capital structure decisions. In addition, results suggest that the trade-off and pecking order theories can be used jointly in explaining the capital structure of Italian SMEs. However, results highlight that financing decisions are closer to the predictions of pecking order theory.