Cost of the Accounting Scandal of Luckin Coffee to Multiple Aspects and the Influence Under Current Economy and Pandemic Time

DOI

10.2991/aebmr.k.201128.035How to use a DOI?

Keywords

Luckin Coffee, accounting Scandal, business fraud, stock market, china concept stock, accounting firms, economy in pandemics

Abstract

Luckin Coffee, as one of the most successful marketing cases in China or even the world, break the fastest IPO record in China in 2019. However, the recent fraud has led to the great attention, fear of the reliability and value of Chinese stock market. This paper analyzes the fraud of Luckin Coffee, faking process and the general public’s reaction. It illustrates the cost of assets and confidence through comparison analysis with the foreign investment and the domesticate capital, the following influence toward the Chinese stock market. Evidence showed that the damage to the stock market is significant, especially in this pandemic time as the spread of COVID-19 with the economy crisis. In conclusion, the accounting scandal of Luckin Coffee informs a widespread damage to investors, the stock markets, and other Chinese firms that plans to attract capitals in the United states. The financial reporting system including the accounting firms and the internal financial department are also facing criticisms and needs to redesign the supervising measurements, clamp down the illegal movements, forming a solid and strict system avoiding the internal scandal or any other loopholes in order to create a reliable stock market for investors during this special time.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Qiyao Wang
PY  - 2020
DA  - 2020/11/30
TI  - Cost of the Accounting Scandal of Luckin Coffee to Multiple Aspects and the Influence Under Current Economy and Pandemic Time
BT  - Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)
PB  - Atlantis Press
SP  - 170
EP  - 173
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201128.035
DO  - 10.2991/aebmr.k.201128.035
ID  - Wang2020
ER  -