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It has a part in quite a few formulas:

Accuracy = [(BaseAccuracy * (1 + aAGI/100 + aLUC/200)) / (1 + (dAGI/100) + (dLUC/200)] * [AccuracyModifiers], capped between 20% and 100%.

Party Rating = (pAGI + 10) * (pLUC + 10)
Enemy Rating = (eAGI + 10) * (eLUC + 10)
Ambush = 5 * [Party Rating / Enemy Rating]
Blindside = 7 * [Enemy Rating / Party Rating]

Escape Chance = [10 * (aAGI + aLUC + 5) / ([vAGI] + [vLUC] + 5)]

Notes:
aAGI, aLUC = Attacker AGI, Attacker LUC
dAGI, dLUC = Defender AGI, Defender LUC
pAGI, pLUC = Highest Party AGI, Highest Party LUC
eAGI, eLUC = Highest Enemy AGI, Highest Enemy LUC
vAGI, vLUC = Average Enemy AGI, Average Enemy LUC.

And, yes, it also works on the Status Effect formula but I don't have the exacts for that; essentially, aLUC needs to equal dLUC (aLUC = dLUC) to get the base chance of the spell success rate before resistances.

Cool, I've always made sure to equip luck beads to my hexer and its nice to know that I'm vindicated.

To be honest, though, the effect they have is pretty small (at least compared to the average resistance of ~95% for most Bosses) so it's not that useful. Especially since Hexer LUC is pretty much on-par with or greater than the average enemy LUC.

I dunno, early on Luck Beads could be pretty useful for increasing ambushes/decreasing blindsides. Maybe not so much later in the game when +5 LUC doesn't result in as large of a percent increase in pLUC, but for around half of the first stratum Luck Beads result in something close to 1.25*pLUC or 1.5*pLUC, yeah?