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Investing.com -- Shares of Japanese motor maker Nidec suffered their biggest drop on record Thursday, plummeting more than 22% after the company announced an investigation into potential improper accounting practices.
The Kyoto-based manufacturer said Wednesday it would establish a third-party committee to investigate suspected accounting irregularities that were initially flagged by one of its subsidiaries regarding another Nidec unit in China.
An internal probe into a payment of approximately 200 million yen (about $1.4 million) by the Chinese subsidiary uncovered documents suggesting "that the company and its group companies could have engaged in improper accounting with the involvement or knowledge of its or their management," Nidec stated.
The company pledged to cooperate fully with the third-party investigations.
The dramatic share price collapse marked Nidec’s worst one-day loss ever and stood in stark contrast to the broader market sentiment in Tokyo on Thursday, which was following overnight gains on Wall Street.
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