Nidec shares plunge 22% as China unit probe finds accounting issues tied to management

Shares of Nidec Corp plunged arsenic overmuch arsenic 22.44% Thursday, aft the institution announced a probe into alleged improper accounting astatine 1 of its subsidiaries.

The instauration of an autarkic third-party committee comes aft an interior probe of its Chinese subsidiary, Nidec Techno Motor, for the alleged malpractice, which revealed grounds suggesting a nexus to Nidec's management.

"The Company recognized limitations successful the erstwhile probe strategy engaging outer experts and led by members of the Audit and Supervisory Committee, arsenic good arsenic the request for nonsubjective investigations by a third-party committee autarkic of the Company," Nidec said in a statement Wednesday.

This marks the Japanese electronics components manufacturer's biggest one-day drop.

Shares of Nidec Corp