By Ben McLannahan in Tokyo
Olympus, the Japanese camera company at the centre of an accounting scandal, is to retain its listing as a public company, the Tokyo Stock Exchange has confirmed.
The TSE said that the company?s concealment of large unrealised losses on investments over many years had ?generally no effect on sales or operating profit.? As such, the TSE said it could not ?deem that investor judgment was considerably distorted to the extent of warranting delisting.?
Since the scandal came to light last October, Olympus has lost about half of its market capitalisation, partly on speculation that the stock would be delisted. Instead, Olympus will pay a penalty of Y10m ($130,000), and will be designated a ?security on alert?, signalling that its internal control systems must be improved.
The TSE?s decision to keep the stock listed will probably lead to accusations of inconsistency. Six years ago the internet start-up Livedoor was kicked off the exchange after an investigation into improper accounting.
? The Financial Times Limited 2012