The objective of this study is to analyze the financial model being opted by textile firms which are listed at the Karachi stock exchange in the context of capital structure theories. The analysis is based on a sample of 8 listed companies at Pakistan Stock Exchange and study period is 2009-2013. We used pooled regression model. Our results show that both Static trade-off theory and Pecking order theory have relationship with corporate capital structure theories. The theoretical framework

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... es the corporate capital structure theories and modern research work in this field. Hypotheses are formulated on the basis of theoretical framework. Regression model is used to analyze the data taken from Pakistani textile firms. Financing pattern of firms partially supports the Static trade-off theory and Pecking order theory.