It is disclosed herein that expression of microRNA-26 is decreased in hepatocellular (HCC) tumor tissue relative to non-cancerous tissue, and that a low level of microRNA-26 is associated with a poor clinical outcome. It is also disclosed herein that a low expression level of microRNA-26 is correlated with a favorable response to interferon (IFN)-α therapy in HCC patients. Thus, provided herein is a method of predicting the clinical outcome of a patient diagnosed with HCC comprising detecting the level of microRNA-26 expression in a sample obtained from the patient. Also provided is a method of selecting a patient diagnosed with HCC as a candidate for IFN-α therapy, comprising detecting the level of microRNA-26 expression in a sample obtained from the patient. A method of identifying therapeutic agents for the treatment of HCC, comprising screening candidate agents in vitro to select an agent that increases expression of microRNA-26 in HCC cells are also provided. Further provided are methods of treating a patient diagnosed with HCC and expressing a low level of miR-26, wherein treatment comprises IFN-α therapy.