Toshiba relegated from JPX-Nikkei Index 400

 

Good news is in extremely short supply at Toshiba, the scandal-hit Japanese conglomerate.

Fresh from a $1.2bn accounting scandal, Toshiba has been relegated from the JPX-Nikkei Index 400, a grouping compiled by the Japan Exchange group, the Nikkei and the Tokyo Stock Exchange to endorse companies with strong corporate governance and shame those without, write Nathalie Thomas and Jennifer Thompson.

The group has been ejected from the index as part of a periodic review.

A further 41 companies have also been shuffled out of the index as part of the review, including Lixil, a home equipment manufacturer – but Toshiba is the largest scalp by far.

The $1.2bn accounting scandal at Toshiba has claimed a number of heads at the Japanese conglomerate – including its chief executive Hisao Tanaka. (FT)