Nidec Stock Rises After Accounting Probe Report Eases Delisting Concerns

Nidec Corp (TYO:6594) shares climbed sharply on Monday after the Japanese electric motor manufacturer released its final report addressing improper accounting practices. The stock surged as much as 7.8% to 2,445 yen before paring gains to around 2,407 yen in early trading, reflecting renewed investor confidence following the long-awaited findings.

The company disclosed that the independent investigation identified a total net profit impact of approximately 160.7 billion yen (about $1.01 billion) stemming from accounting revisions covering fiscal 2020 through early 2025. This figure exceeded earlier estimates, which indicated a 139.7 billion yen reduction in net assets. Despite the higher financial impact, markets responded positively as the release of the final report reduces uncertainty and regulatory risks.

According to the findings, the improper accounting issues did not affect Nidec’s core manufacturing operations. Instead, they were primarily linked to internal financial reporting practices. The report also confirmed that goodwill and asset impairment impacts remained unchanged at roughly 250 billion yen, while additional costs included an 11.1 billion yen hit from U.S. customs duties.

Importantly, the conclusion of the probe significantly lowers the risk of Nidec facing delisting from the Tokyo Stock Exchange. It also enables the company to move forward with filing amended financial statements, a key step toward restoring full compliance and investor trust. Analysts note that clarity around these issues has been a major factor driving the recent rebound in Nidec stock.

The investigation further revealed that much of the misconduct was tied to aggressive performance targets and internal pressure associated with founder and former chairman Shigenobu Nagamori, who stepped down from the board in December.

Despite the accounting scandal, Nidec shares have risen nearly 15% in 2026 after hitting record lows in late 2025. Investors continue to show confidence in the company’s strong manufacturing business and long-term growth potential, suggesting that operational fundamentals remain intact even amid past financial reporting challenges.