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Academic Journal of Business & Management, 2021, 3(11); doi: 10.25236/AJBM.2021.031107.

Case study of luckin coffee financial fraud based on theory of fraud risk factors

Author(s)

Zheng Jiayu1, Tang Yuan2

Corresponding Author:
Zheng Jiayu
Affiliation(s)

1School of management, Sichuan University of Science & Engineering, Zigong, Sichuan

2School of management, Sichuan University of Science & Engineering, Zigong, Sichuan

Abstract

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.

Keywords

Theory of fraud risk factors; Financial fraud; Motivation

Cite This Paper

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.

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