Nidec Shares Tumble Amid Accounting Investigation Concerns

Nidec's shares plummeted after announcing a committee to probe potential management involvement in improper accounting at a Chinese unit. Investor concerns are rising due to governance issues. The Kyoto-based electric motor manufacturer has faced repeated accounting scrutiny, affecting its stock performance and investor confidence.

Nidec shares experienced a significant drop on Thursday, plummeting by one-fifth, following the announcement of a third-party investigation into possible management involvement in improper accounting practices.

The company's decision to establish an independent committee came after an internal review uncovered suspected accounting irregularities at its Chinese subsidiary, leading to broader investor concerns about corporate governance.

This latest development added to Nidec's history of accounting scrutiny, prompting analysts to highlight ongoing concerns about the company's management and internal controls, impacting investor confidence and stock performance.

(With inputs from agencies.)