Prosecutors alledge Carlos Ghosn passed on personal investment losses of $16.6m (£13.1m) to Nissan.
Carlos Ghosn can be held for another 10 days in a Tokyo jail after prosecutors alleged he had passed on personal investment losses of $16.6m (£13.1m) to Nissan.
Ghosn was arrested a month ago - along with a colleague - as part of an investigation into alleged financial misconduct over the reporting of his income. He was later formally charged.
A Tokyo district court on Thursday refused the prosecutors' attempts to hold him for longer, raising the prospect that he could be freed on bail.
The allegations against him relate to the disclose of compensation worth tens of millions of dollars that he had allegedly arranged to receive later.
Just hours before his new arrest, he had vowed to restore his good name in court and hold a press conference once he was released.
Speaking through his lawyer and quoted by Japanese public broadcaster NHK, Ghosn said: "Things as they stand are absolutely unacceptable. I want to have my position heard and restore my honour in court."
Television camera crews had gathered outside the Tokyo jail on Friday morning in hopes of catching sight of Ghosn being released.
Nissan, which removed him as its chairman shortly after it made public the findings of its own investigation, claims he also misused company funds.
The scandal has shaken the Renault-Nissan-Mitsubishi alliance, with the French company refusing to take action over his dual chairman and chief executive role there, citing a lack of evidence.
Mitsubishi - like Nissan - has stripped Ghosn of his role as its chairman.