ESG Disclosure and Cost of Capital in Listed Italian SMEs: Empirical Evidence from a Multi-Case Study

This study investigates the impact of ESG disclosure on the cost of capital in Italian SMEs listed on Euronext Growth Milan, a context underexplored in the literature. The primary objective is to test three hypotheses: (H1) a negative ESG-WACC/CoE/CoD relationship; (H2) heterogeneity in pillar-specific effects; (H3) moderation by structural factors (leverage, size, ESG trends). Literature review and theoretical framework: The research draws on signalling theory (Spence, 1973), agency theory (Jensen & Meckling, 1976), and legitimacy theory, addressing the empirical gap on post-NFRD/pre-CSRD Italian SMEs. Existing studies show mixed ESG effects for SMEs (e.g., increased CoC in some contexts) but highlight the E-pillar's crucial role in debt and the G-pillar's role in equity. Methodology and methods: Quantitative multi-case study on 7 innovative SMEs (2020-2024), using Refinitiv/Bloomberg data. Multivariate OLS regressions test H1-H3, including controls (Size_ln, Leverage, ROA, Growth, Tech_dummy) and moderating interactions. Diagnostics: R² 0.68-0.72, VIF <3, Jarque-Bera normality.