Research on the Relationship Between Financial Fraud and Short-selling Risk of Listed Companies

Xiyuan Chen ()
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Xiyuan Chen: The Hong Kong Polytechnic University, School of Accounting and Finance

A chapter in Proceedings of the 2023 International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2023), 2024, pp 564-573 from Springer

Abstract: Abstract The financial fraud of listed companies is a major obstacle to the effective operation of China’s market and a key concern of academic circles. At present, the financial fraud of listed companies in China is becoming increasingly diversified, complicated and hidden, and its potential risks are becoming increasingly obvious, which has attracted the attention of short-selling institutions. Taking Luckin Coffee as the research object, this paper makes a complete and systematic study on the causal logic of fraud, risk and short selling, explores the three major fraud motives of Luckin Coffee, such as cash demand, governance demands and operational pressure, combs and analyzes the risks existing in in five aspects, such as information disclosure, listing model, business model, ownership structure and internal governance, as well as the short selling behavior of Muddy Water Research based on risks, and puts forward relevant suggestions to listed companies.

Keywords: Financial fraud; short-selling risk; Luckin Coffee (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-441-9_48

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DOI: 10.2991/978-94-6463-441-9_48

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