Marziyeh Mashayekhi - M.A of Industrial Management (Financial Trends)
Mohammad Ali Motaman - Faculty of Management, Department of Economic and Management, Shiraz Branch, Islamic Azad University

There exist an inseperable relationship between finance on the one hand and production, marketing and other functions on the other hand. Almost all business activities, directly or indirectly, involve the acquisition and use of funds. This study try to explore the relationship between financial leverage and dividend policy of petrochemical firm's value listed in Tehran Stock Exchange with ‚during the period 2003 to 2010. The descriptive and inferential statistics was conducted to identify the relationship among all the variables‚ followed by regression analysis. The results revealed that financial leverage has a significant negative effect on the significance level of less than 1% of the firm's value, and a significant positive effect on the level of significance of 5% of the value of the company.This study confirmed the results of the previous studies (Zhou, Roland, 2006).

Financial Leverage, Dividend policy, Profitability, Petrochemical Firm value