Zheng Jiayu1, Tang Yuan2
1School of management, Sichuan University of Science & Engineering, Zigong, Sichuan
2School of management, Sichuan University of Science & Engineering, Zigong, Sichuan
Since the formation of the capital market, financial fraud events centering on listed companies occur frequently. The credit mechanism of the capital market is seriously frustrated, and investors have suffered huge economic losses. In this paper, luckin coffee as an example, from the five aspects of theory of fraud risk factors, through the representation of luckin coffee financial fraud, analyzes the internal causes of its fraud. Through the case study, it is found that the occurrence of financial fraud in luckin coffee is the result of internal and external factors. On the one hand, it has sounded the alarm for the standardized operation of new retail enterprises in China, and on the other hand, it has provided enlightenment for the country to improve relevant laws and regulations and strengthen the cost of fraud punishment.
Theory of fraud risk factors; Financial fraud; Motivation
Zheng Jiayu, Tang Yuan. Case study of luckin coffee financial fraud based on theory of fraud risk factors. Academic Journal of Business & Management (2021) Vol. 3, Issue 11: 37-41. https://doi.org/10.25236/AJBM.2021.031107.
 Beasley,M.,J. Carcello,D. Hermanson,P.D. Lapides.Fraudulent financial reporting:Consideration of industry traits and corporate governance mechanisms[J].Accounting Horizons,2000(14).
 Normah Omar, Zulaikha Amirah Johari,Suhaily Hasnan . Corporate Culture and the Occurrence of Financial Statement Fraud:A Review of Literature[J].Procedia Economics and Finance,2015,31.
 Ye Shulin. Research on Financial Fraud of Listed Companies and Its Governance Countermeasures [J]. China Certified Public Accountants,2011(04):75-80.
 Hu Mingxia, Ma Qianqun, Qiao Xi. Analysis of Kang Dexin's fraud case based on fraud triangle Theory [J]. Finance and Accounting,2020(06):58-61.
 Song Fusheng. Analysis on financial fraud means and governance in IPO of listed companies [J]. Accounting Learning, 2020 (31): 25-26.
 Chen Shiqing.IPO financial fraud common means and typical case analysis [J]. Finance and Accounting Bulletin,2018(16):99-102.
 CAI Yuna. Case Study of Boyuan Investment Financial Fraud Based on GONE Theory [D]. South China University of Technology, 2018.
 Yang Jie. Case Study of Financial Fraud based on Fraud risk Factor [D]. Jiangxi University of Finance and Economics,2021.
 Zhang Li, Hu Huaxia, YU Yueyang. Case study of financial fraud based on fraud triangle Theory [J]. Finance and Accounting Monthly,2015(07):69-72.