Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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Strategic Repair After Corporate Financial Fraud: Path, Effectiveness and Implications

Authors
Hongmin Pu1, You Wu2, *
1EIC EDUCATION Shanghai, Shanghai, China
2Shanghai Shixi High School, Shanghai, China
*Corresponding author. Email: you.vivian.wu@gmail.com
Corresponding Author
You Wu
Available Online 3 November 2025.
DOI
10.2991/978-94-6463-874-5_22How to use a DOI?
Keywords
Financial Fraud; Luckin Coffee; Enlightenment and Results
Abstract

After financial fraud is exposed, companies usually take "self-rescue" measures positively to minimize economic losses and repair the reputation of companies. According to the financial fraud of Luckin Coffee, this article conducts a long-term tracking analysis of quarterly financial statements and analyzed the changing trend of Luckin Coffee’s financial status by using the Z-score model. The article focused on two key financial measures Luckin Coffee took, exploring their long-term effectiveness and effects. The results show that the strategy of "opening up franchise to expand the market" measure adopted by Luckin Coffee can bring long-term sustainable and positive development to the company effectively. The "new product release" measure has been improving Luckin Coffee’s financial position effectively and significantly in the short term, with limited impact in the long-term. Although post-crisis response measures can restore the financial structure and market confidence of companies to a certain extent, companies should firm to the bottom line of compliance, strengthen internal governance, and prevent the occurrence of financial fraud fundamentally.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 November 2025
ISBN
978-94-6463-874-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-874-5_22How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hongmin Pu
AU  - You Wu
PY  - 2025
DA  - 2025/11/03
TI  - Strategic Repair After Corporate Financial Fraud: Path, Effectiveness and Implications
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 172
EP  - 178
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_22
DO  - 10.2991/978-94-6463-874-5_22
ID  - Pu2025
ER  -