TOKYO, Oct 24 (Reuters) - Shares of Japan's Nidec ( NNDNF )

slumped a further 3.6% on Friday after the precision

motor maker withdrew its full-year earnings forecast, the latest

twist in a deepening accounting scandal.

The stock has lost more than 21% since September 3, when the

Kyoto-based supplier to Apple ( AAPL ) said it was setting up an

independent committee to investigate the possible involvement of

management in improper accounting at a Chinese subsidiary.

In addition to withdrawing its forecast for the fiscal year

to March 2026, Nidec ( NNDNF ) said it would not pay an interim dividend

and had cancelled an already approved share buyback programme on

account of the investigation.

"Nidec ( NNDNF ) will promptly announce the year-end dividend forecast

and consolidated financial forecasts once it becomes possible to

do so," the company said.

Deputy head of research at Yamawa Securities Takeshi Tago

said, "announcing this based on the independent committee's

investigation suggests the company is starting to see the impact

on earnings."

"However, investors don't know the extent of the impact, so

caution is driving heavy selling," he added. "Despite the

declines, there are no signs of any appetite for bargain

hunting."

There are concerns among market participants that a

delisting may be next.

For now, the Tokyo Stock Exchange's hands are tied, as it

needs to wait for the findings of the independent committee on

how deep the accounting irregularities extend.

"Investors do not have the information necessary to make

investment decisions," said Natsumi Yamawaki, an investigator in

the TSE's Listing Department Planning Group.

The issues with the Chinese unit were preceded by the

company's revelation in June of possible lapses at its Italian

subsidiary, causing Nidec ( NNDNF ) to delay the filing of its financial

report for the previous fiscal year.

Although Nidec ( NNDNF ) met a delayed deadline to submit the annual

report last month, the company's auditor, PwC Japan, withheld an

opinion on its financial statements, citing insufficient audit

evidence.

UBS Securities analyst Shingo Hirata said the case may

reflect Nidec's ( NNDNF ) past focus on rapid growth through aggressive

acquisitions.

At the same time, he sees several positives for the company

that could catalyse a share rebound, including its attempt to

concentrate more on data centres.

"Based on my discussions with investors, full disclosure of

the independent committee's findings is essential for the stock

to bottom out," Hirata said.