Petroleum University of Technology Petroleum Business Review 2645-4726 1 1 2017 11 01 Relationship between Financial Leverage and Firm Growth in the Oil and Gas Industry: Evidence from OPEC 9 21 58117 10.22050/pbr.2017.58117 EN Seyed Mohammad Javadi Accounting Department, Tehran Faculty of Petroleum, Petroleum University of Technology Abbas Alimoradi Accounting Department, Tehran Faculty of Petroleum, Petroleum University of Technology Mohammad Reza Ashtiani MA in Oil & Gas Economics, Petroleum Faculty of Tehran, Petroleum University of Technology, Iran Journal Article 2017 03 28 Recent theories of firm dynamics emphasize on the role of financial variables as determinants of firm growth. Most of the technical literature shows that there is a positive relationship between financial leverage and firm growth. The purpose of this paper is to examine whether such relationship exists among oil and gas companies within the Organization of the Petroleum Exporting Countries (OPEC). Data were collected from the selected members of the OPEC. The collected data was then analyzed using the Arellano and Bond (1991) GMM method and Sargan test. The results showed a significant and positive relationship between financial leverage and firm growth which is in line with the technical literature. This research contributes to the body of knowledge by examining a specific and important sector within several different countries. It shows the current theory is not affected by industry or country. https://pbr.put.ac.ir/article_58117_7d1e338e51acc0a4e13e297b9b54e4e0.pdf