Nidec Stock Tumbles After Accounting Investigation in China Unit

On Thursday, shares of Nidec Corporation plummeted by up to 22.44% following the disclosure of an investigation into suspected financial misconduct at one of its divisions.

An internal audit of Nidec Techno Motor, the company's Chinese branch, uncovered potential financial irregularities. This prompted the formation of an independent third-party committee tasked with exploring these issues, which appear to be linked to the management at Nidec.

"We identified shortcomings in our prior examination procedures, which involved external specialists and members of our Audit and Supervisory Committee," announced Nidec on Wednesday. "This has underscored the importance of impartial investigations by an independent committee not affiliated with the Company."

This accounts for the largest single-day decline in the stock value of the Japanese electronics sectors manufacturer.