Suppose that you have been observing the financial markets for a while and have decided to buy shares of a bank. You have information regarding Alfa Bank, which has not been performing well during the last two years. Today you read that Alfa’s CEO has resigned and a new CEO, Jeremy Anderson, is in charge. You are aware that he was a successful leader of an international bank and has quite a lot of experience and a good reputation in the industry. Based on this piece of news, what decisions will you make?

What theories may influence your decisions?