The Causes, Consequences and Countermeasures of Financial Fraud Based on the Case of Luckin Coffee

Abstract

Muddy waters made an 89 pages’ report on Luckin coffee, it said Luckin Coffee had been making fictitious trades since the third quarter of 2019. The massive financial fraud at Luckin Coffee has dealt a blow to the Chinese company's reputation.This article through the relevant theories of financial fraud and the actual condition of financial fraud, rui xing coffee GONE theory analysis of the financial fraud motivation, and on the basis of the use of event study research shares for rui xing coffee fraud exception response, in the end, through to the audit institutions, enterprise itself and the government and regulators all three Suggestions, To guard against the consequences of governance failure.