What is Nidec doing to address its accounting scandal?

Nidec is overhauling its culture and internal controls, acknowledging a prioritization of short-term profits and issues with employees speaking up.

What are the consequences of Nidec's accounting scandal?

The scandal has resulted in a junk debt rating from Moody's Ratings and the risk of delisting from the Tokyo Stock Exchange.

When will the Nidec accounting investigation results be available?

A third-party probe into Nidec's accounting irregularities is expected to submit its findings around the end of February.

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Nidec Faces Delisting Over Accounting Irregularities

28 Jan

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Summary

Nidec pledged to overhaul its growth-at-all-costs culture.
An accounting scandal led to a junk debt rating and delisting risk.
A third-party probe into irregularities is expected by February end.

Nidec Faces Delisting Over Accounting Irregularities

Nidec Corp. is implementing a sweeping cultural and internal control overhaul to navigate an accounting scandal that has led to its debt being rated as junk and placed it at risk of delisting. The company acknowledged that a culture prioritizing short-term profits and intolerance for missed targets fostered an environment where employees felt unable to speak up.

This situation has led to significant consequences, including a downgrade of Nidec's debt rating to junk by Moody's Ratings earlier this month. The Tokyo Stock Exchange has warned of potential delisting if Nidec fails to demonstrate improvements in its internal management system. The company's founder, Shigenobu Nagamori, has stepped down as chairman.

A third-party investigation into the accounting irregularities is currently underway, with its findings expected by the end of February. Nidec has disclosed accounting issues spanning subsidiaries in Italy, Switzerland, and China, as well as its car inverter business, which has delayed financial report submissions and auditor assessments.

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