According to the sources Link file extension is nothing but a windows shortcut. The File extension uses the program Windows shortcut file as a pointer for an extension file on the users system.
File shortcuts were introduced in Windows 95 by Microsoft Incl. Microsoft Windows uses .link as the file name extension for shortcuts to local files, and .URL for shortcuts to remote files, like web pages. Most Commonly referred to as “shortcuts” or “link files”, both are displayed with a curled arrow overlay icon by default, and no file name extension.
The icons of LINK files are naturally comprehensive of a deformed, small arrow indicating that the file is pointing another direction. This file has the knack to link to an app from a diverse location. This can be a link that enables the file the user is working on, or MS word to be accessible from the desktop. The concept about link to applications or files exists in Mac OS. Virtually, file extension LINK is specific to the program Windows operating system which is used to open it.
Clicking on the shortcut is similar to clicking on the extension file which should result in the running of the associated program. This indicates that the file has attributes that define the running of the program and attribute setting. When file extension LNK stops working, this may be due to the .EXE association being broken by a program of anti-malware which changes the registry improperly or the corruption of the registry association.
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