The current and former presidents of Japanese conglomerate Toshiba have resigned after an independent report found them complicit in a yearslong scheme to pad profits. Investors welcomed the move.
Toshiba President Hisao Tanaka (pictured) and his predecessor Norio Sasaki on Tuesday stepped down in the wake of a simmering accounting scandal that saw senior management involved in a scheme to doctor corporate earnings figures.
An independent report showed that executives had systematically inflated profits by $1.2 billion (1.1 billion euros) over several years in one of the most damaging accounting scandals to hit Japan recently, with irregularities stretching back to 2008.
The report painted a picture of a corporate culture where employees could not challenge powerful bosses, who were intent on boosting profits at almost any cost.
"Inappropriate accounting was carried out as a result of management decisions betraying the trust of many stakeholders," the report concluded.
Fresh start envisaged
The management shake-up was welcomed by investors Tuesday, with the Tokyo-listed shares jumping by 5.78 percent in early trading.
Analysts said the increase was the result of investors buying back into the battered stock, which had lost more than 20 percent since May.
Toshiba is best known for its television sets and electronics. The firm has more than 200,000 employees worldwide and also operates in the fields of power transmission and medical equipment.
hg/pad (AFP, dpa)