Shares in Nikko Cordial Group have dropped following a probe that implicates former executives in allegations of improper accounting.
Following an independent investigation, senior managers at the firm were accused of padding earnings for 2004. Since December, five of Nikko’s top executives have quit the firm, including its president and chairman.
Nikko stock fell to an 18 month low on 1 February, dropping 16 per cent to 1,000 yen at the close of the market in Tokyo. A drop of 28 per cent over two days sliced $3.1 billion off the firm’s market value.
The Tokyo Stock Exchange has said that it will consider the findings of the investigation before making a decision on the firm’s future.