Author(s)

Du Wei ¹

Affiliation(s)

¹ School of Accounting, Zibo Vocational Institute, Zibo, China

Corresponding Author

Du Wei

ABSTRACT

In recent years, many Chinese companies have gone public in the United States, which has brought opportunities for their development and made these Chinese companies the focus of regulatory agencies. Luckin Coffee only took more than one year from its establishment to its listing, attracting more attention. At the beginning of 2020, the short selling report of Muddy Water Company was released. In April 2020, Luckin Coffee also admitted financial fraud. So far, Luckin Coffee has been pulled down from the altar. This article first combs the development process of Luckin Coffee, analyzes the motivation of financial fraud of Luckin Coffee based on GONE theory, and analyzes the enlightenment from the case.

KEYWORDS

Luckin Coffee; Financial fraud; Corporate governance; Supervise

CITE THIS PAPER

Du Wei, Luckin Coffee Financial Fraud Case Analysis. Financial Engineering and Risk Management (2023) Vol. 6: 125-128. DOI: http://dx.doi.org/10.23977/ferm.2023.060716.

REFERENCES

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[3] Mei Xinshun. Analysis of the Causes and Countermeasures for Financial Fraud in Listed Companies [J]. Financial and Accounting Communication, 2009 (13): 96-97
[4] Hong Hong, Hu Huaxia, Guo Chunfei. Identification of Financial Reporting Fraud in Listed Companies Based on GONE Theory [J]. Accounting Research, 2012 (8): 84-90
[5] Huang Shizhong. Analysis on Extended Financial Fraud of Kangmei Pharmaceutical [J]. Monthly Journal of Finance and Accounting, 2019 (17): 3-6
[6] Han Hongling, Chen Shuaidi, Lu Xumi, Chen Hanwen. The Ruixing Incident and Cross border Securities Regulatory Cooperation between China and the United States: Review and Prospects [J]. Friends of Accounting, 2020 (9): 6-13

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