Luckin: From Brewing Coffee To Brewing Fraud

Raymond Chan, Shimin Chen, Justin Law, Sunny Y. J. Sun

Research output: Other contributionCase Studies

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.
Original languageEnglish
Number of pages16
Publication statusPublished - 30 Jun 2021

Case number

GC-20-010

Case normative number

GC-20-010-CE

Case type

Field Case

Update date

02/05/2023

Supplement

For more details, please visit www.chinacases.org

Published by

China Europe International Business School

Keywords

  • 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

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