Zhang Yonghong Professorship in Accounting

On March 9, 2023, Silicon Valley Bank (SVB) experienced a withdrawal of 40% of its deposits, just two days after Forbes had ranked it as the best bank in America for a fifth consecutive year. The collapse triggered broader runs on other banks and nearly destabilized the high-tech sector, as many of Silicon Valley’s leading investors and startups relied on SVB as their primary bank.

SVB's deposits doubled in 2021 after three years of strong Nasdaq growth and were mainly invested in long-term government bonds. When the Federal Reserve raised interest rates in 2022, bond prices fell and SVB lost about 20% of its portfolio, making it nearly insolvent by the third quarter at latest. While these losses were often cited as the reason for the March 9 run, it's unclear why the run didn't happen sooner, since the problem was evident months earlier.

Professor Pingyang Gao is the Zhang Yonghong Professor of Accounting and the Associate Dean for Research and Knowledge Exchange at the HKU Business School. He is a leading scholar in capital markets, banking regulation, and corporate governance.

Professor Gao holds a PhD in Accounting from Yale, a Master’s in Finance from Peking University, and a Bachelor’s in Accounting from Renmin University of China. He taught at the University of Chicago Booth School of Business for twelve years and was a visiting faculty member at Yale.

His research addresses pressing economic issues, particularly those highlighted by the early-2000s corporate scandals and the 2008 global financial crisis. Through rigorous economic models, Professor Gao has analyzed the root causes and consequences of accounting and regulatory failures. His work has provided rationales for significant regulatory institutions, including the Sarbanes-Oxley Act, the creation of the PCAOB, and various capital market institutions such as short selling and banking regulations such as mark-to-market accounting.

After moving to Hong Kong, his research has focused on the capital markets there and in Mainland China. He demonstrates that low valuations in Hong Kong, which make it less competitive compared to other global exchanges, is mainly attributed to weak corporate governance and inadequate protection for minority shareholders. To address these issues, he suggests introducing reforms such as class-action lawsuits and strengthening the market for corporate control, which could increase accountability and better safeguard investors.

He has led academic organizations such as CAPANA and the Hong Kong Academic Accounting Association, and has served as associate editor for major journals. He has taught doctoral seminars at many institutions and mentored doctoral students who have secured prominent academic posts. An award-winning educator, Professor Gao has developed and taught notable courses such as "The Philosophy of Economics" for PhD students and "Managing Black Swans" for executives and MBAs, earning consistently high student feedback.

Beyond academia, Professor Gao is an Independent Non-Executive Director for listed companies like PICC and Zhongyuan Bank, consults for the World Bank, and has trained executives at numerous financial institutions. His insights are featured in international media such as Bloomberg and The New York Times.

In summary, Professor Pingyang Gao is a distinguished scholar, leader, and educator whose substantial contributions—through pioneering research, dedicated mentorship, and influential engagement with policy and practice—have significantly advanced the accounting discipline.