Shares of the largest automaker Renault, traded at the Paris Stock Exchange, fell by 15%. The stock price slid after the arrest of Carlos Ghosn, chairman of the Renault-Nissan-Mitsubishi alliance.
The decline was 14.85% to €55.1 per share. Later, the share price rebounded to €57.62 (-10.70%).
On November 19, Carlos Ghosn, head of the Renault-Nissan-Mitsubishi alliance, was arrested in Japan. Several months were spent for the internal investigation aimed at clarifying fraudulent actions of C. Ghosn and Greg Kelly, a board member.
The investigation revealed that G. Kelly and C. Ghosn committed acts of misconduct with accounting reports, filing a falsified financial statement for the Tokyo Stock Exchange. The head of the Renault-Nissan-Mitsubishi alliance is also charged with other acts such as personal use of the company's assets.
The company apologized to shareholders and adopted a decision on the dismissal of both fraudsters, C. Ghosn and G. Kelly. According to the Japan News, the head of the Renault-Nissan-Mitsubishi alliance is considered to be one of the highest-paid top managers in Japan. In 2015, his salary was 1.07 billion yen, reaching 1.09 billion yen in 2016. However, the financial statement of the corporation for 2017 contains the amount by 33 percent below the above one - about 730 million yen ($6.4 million).
