With enhanced expectation of Renminbi appreciation,short-term foreign debt in China has increasingly enlarged.

This paper presents a simple theoretic model that account for the abundance of short-term foreign debt in emerging market countries afflicted by currency crises, and argues that the over-inflows of short-term foreign debt in emerging markets result from governments guarantee on private investment.

The analysis reveals a phenomenon that the listed companies prefer to replace the long-term debt financing with short-term debt and stock financing due to the effectiveness limitation of bankruptcy law in China and the substi.

It shows that debt maturity has a signaling function at the occurrence of separating equilibrium under the condition of adverse selection,which is to say,good firms issue short-term debt to signal his quality and bad firms have to choose to issue long-term debt.

Based on the principle of golden section theory,this article analyzes the ratio of an enterprise s debt and equity in its assets and the ratio of short-term debt and long-term debt in its total debt.

Some theorists hold that short-term debt is an important factor that causes international financial crisis and the policy of restricting or banning the short-term capital by imposing taxes on its influx should be adopted to guard against the financial crisis.

Short-term debts of the former year has positive influence on performance,but debts of this year has a negative influence.