A Case Study On Financial Fraud Of Luckin Coffee Based On Grounded Theory

With more and more listed companies,the implementation of the responsibilities of relevant regulatory authorities has failed to achieve the same frequency resonance with the wave of enterprise development.In addition,enterprises show a strong profit seeking psychology in the face of the spring tide of capital market,which breeds the soil for financial fraud of listed companies.Financial fraud will not only hinder the company’s own development and make the company face delisting risk,but also make more enterprises no longer willing to abide by market rules,cause a vicious circle and destroy the market ecology.At the same time,it brings huge interest losses to the majority of investors,produces a trust crisis,reduces the credibility of the capital market,and seriously interferes with the healthy development of the capital market.In order to reduce the financial fraud of listed companies,we must make an in-depth study on the causes and logic of financial fraud.This is of great significance for the company to standardize its own operation and enhance its strength,the regulatory authorities of listed companies to improve regulatory means,and accounting firms to strengthen audit.Luckin Coffee,known as "little blue cup",once became a favorite coffee brand of young people.It took only more than half a year to complete the great leap from 0 to 660 stores,and became a typical representative of China’s new retail coffee at that time.However,muddy water organization shorted Luckin Coffee in 2020,exposing its low-end operation of financial fraud and pushing it to a higher popularity.Luckin Coffee also suffered from its own financial fraud.Who can think of a myth that created a global record for IPO listing,which only lasted 410 days,and finally ended in suspension,delisting and high claims.This thesis focuses on the financial fraud of listed companies adopting the new retail model,selects the financial fraud of Luckin Coffee,a Chinese stock company,as a case for in-depth discussion,and uses the combination of literature research method,case analysis method and theoretical analysis method to make a profound analysis of financial fraud.Firstly,fully understand the financial fraud event,analyze the fraud means and internal governance structure of the company on this basis,and identify the impact of the event on Luckin Coffee.Secondly,collect and sort out relevant news reports and publicly disclosed information,and summarize the deep causes of financial fraud,including: the distortion of the moral quality of the management,the name of independent directors in vain,too light punishment,the pursuit of profits,continuous financing,etc.Thirdly,through spindle coding and selective coding,three main static influencing factors are obtained: awe,motivation and opportunity,and a logical chain is constructed on the basis of text data.Fourthly,through the research on the core influencing factors,this thesis puts forward the specific countermeasures to deal with the financial fraud of Luckin Coffee,that is,to establish awe,reduce the opportunity of fraud and eliminate the motivation of fraud.Finally,aiming at the financial fraud of the new retail industry,it gives targeted enlightenment from the aspects of the enterprise itself,the regulatory department and the accounting firm.