Nidec's Stock Tumbles Amid Accounting Probe

Shares of Nidec, the renowned Japanese electric motor manufacturer, experienced a steep decline, losing nearly one-fifth of their value on Thursday. This drop follows the company's declaration of an investigation into potential management involvement in improper accounting practices.

The probe focuses on a Chinese subsidiary, Nidec Techno Motor, where internal audits have uncovered documents hinting at possible links to management misconduct. This revelation has compounded existing investor concerns about governance under the long-standing influence of founder Shigenobu Nagamori.

Previously, Nidec revised down two years of operating profits by approximately $67 million due to inflated sales records. The company, integral to the electric vehicle industry's supply chain, faces renewed scrutiny as it navigates these financial and managerial challenges.

(With inputs from agencies.)