Abstract
This case describes the aggressive growth of Luckin Coffee since its inception in 2017. In merely two years, Luckin established a coffee network in China, surpassing Starbucks despite the US giant’s 20 years of experience in the country. The case concludes with Luckin’s announcement of accounting fraud in April 2020, followed by the immediate stock market and investor reaction. The case’s epilogue also enables students to consider the spillover implications of accounting scandals for other stakeholders. This case exposes students to several business-related, accounting, and finance issues that lay the foundation for further examination in specific accounting and finance topics.
| Translated title of the contribution | Luckin: From Brewing Coffee To Brewing Fraud |
|---|---|
| Original language | Chinese (Simplified) |
| Number of pages | 16 |
| Publication status | Published - 30 Jun 2021 |
Case number
GC-20-010Case normative number
GC-20-010-CCCase type
Field CaseUpdate date
02/05/2023Supplement
For more details, please visit www.chinacases.orgPublished by
China Europe International Business SchoolKeywords
- growth sustainability
- earnings management
- fabrication
- capital-market consequences
- fraud
- Financial Statements Analysis
- financial statement analysis
Case studies discipline
- Accounting
- Finance
Case studies industry
- Accommodation & Food Services