iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2022.v03i01.009The Determinants of the Financial Behaviour of SMEs: Empirical Evidence from an Emerging EconomySantiagoHernandezMarcoDella PortaIsabellaCaggianoRemoRoscignoSchool of Business, UC, Santiago, Chile, ItalyBusiness Economics Laboratory, Barcelona, Spain, ItalyDepartment of Management and Innovation Systems, University of Salerno, ItalyThis paper studies the relationship between leverage and its main determinants, focusing on Chilean SMEs. To develop the survey, we used trade-off theory and pecking order theory, as these theories are more suitable for explaining the financial decisions of SMEs. The companies analyzed were selected using a stratified sampling technique based on an economic criterion for three years (2016-2018). The research hypotheses were verified with a static, fixed effects (FE) model that also passed the robustness checks. The results showed that the size and tangibility of assets have a positive and significant influence on debt, while profitability has a negative and significant influence on financial leverage. On the contrary, the growth showed a statistically insignificant influence on debt.