This paper forms part of the broader field of theoretical and empirical research on the capital structure of firms. In addition to extending the literature to a new institutional framework (Lebanon), the effect of assets revaluation on firms leverage is being introduced theoretically and tested empirically. The results demonstrate that registering revaluation spreads in the balance sheet increases the borrowing capacity of firms. This procedure that does not bring any cash flows affects the policies and the financing choices of firms. Indeed, a positive and highly significant relation exists between the financial leverage and the revaluation surplus variable. This relation shows the asymmetry of information that exists between bankers and firms regarding the assets of the latter and their present value. All in all, the conclusion is that before revaluation, a firm in an environment touched by a monetary devaluation has a lower debt ratio and a lower borrowing capacity than a firm having exactly the same characteristics but acting in a non-inflationary environment (all else equal).