Companies with small capitalization are considered to have limited capital access because of some restrictions from financial institution as well as capital markets. Under this condition, they may have limitation in applying capital structure theories in their financing decision. This study attempts to explore whether one or some theories apply to their decision making. The theories are pecking order, static trade-off, and agency model theories. This study employs both basic as well extended models, using pooling data. The results show that small caps apply two theories in the financing decision, depending on the availability of sources internal financing and on the use of external financing.