Nidec Shares Rise After Long-Awaited Accounting Investigation Report

By Kosaku Narioka

Nidec Corp. shares rose sharply after the publication of a long-awaited accounting investigation report eased concerns about the business outlook and the risk of possible delisting.

Shares were recently 6.0% higher at 2,402 yen in Tokyo on Wednesday after advancing as much as 19% earlier.

The Japanese maker of electric motors and other equipment said after Tuesday's market close that a third-party committee investigating accounting irregularities estimated a drag of Y139.7 billion, equivalent to $885.6 million, on net assets as of the end of June.

The committee said in a report that billionaire founder Shigenobu Nagamori pressured executives to achieve unrealistic earnings targets, ultimately leading to improper accounting. The committee said Nidec needed to strengthen oversight by independent directors and establish structures that prevent proper business execution from being distorted by the influence of certain stakeholders.

Nagamori stepped down as board chairman in December and as chairman emeritus last week.

In light of the finding, Nidec said it will examine measures to improve internal controls and submit a report to the Tokyo Stock Exchange for a review of its status.

The Tokyo Stock Exchange placed Nidec's stock on special alert in October and said the company needed to improve internal controls. Failure to do so could lead to delisting.

Nidec, which hasn't reported results for the three months ended December, also said Tuesday that revenue for the quarter climbed from a year earlier. It estimated higher cash and equivalents and lower net interest-bearing debt than in previous quarters.

Daiwa Securities credit analyst Hiroki Uchida said it will probably take time to get the full picture of the improper accounting, and that uncertainty remains over Nidec. However, the company's solid revenue and reduction in net debt are positive factors, he said in a note.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

March 03, 2026 22:24 ET (03:24 GMT)