Purpose: This research study aims to investigate that how industrial sector firms decide about their capital structure with reference to risk exposure. This research concludes about the manager’s behavior with respect to business risk, profitability, firm size and sales growth. Design/methodology/approach: Data of industrial sector of Jordan, over the period of 2009-2011 is used for this study. Linear regression model is used for data analysis. Findings: This research study results show that industrial sectors firm’s managers are risk averse, whereas sales growth and firm size are positively related to financial policy decision. Profitability is negatively related with financial policy of the firm.