Japanese precision motor company Nidec was attacked by short-seller Muddy Waters in December alleging the company was a stock promote which used questionable acquisition accounting to artificially inflate profits and mask weak underlying organic growth. GMT Research's analysis of acquisitions found some evidence of material fair value adjustments during Nidec’s FY17 acquisition of Emerson Electric’s power generation and motors business. However, this does not mean that the company was necessarily inflating profits. Subsequent analysis of more recent acquisitions found no evidence of adjustments. It is entirely possible that past adjustments were valid. The accusations against Nidec remain unproven.

Last updated March 2022

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