Multiple studies demonstrate that psychological factors, cognitive biases, and asymmetric information drive market anomalies and deviations from the efficient market hypothesis.
The provided literature extensively documents how behavioral biases (such as herding, overconfidence, and sentiment) and market frictions or information asymmetries lead to deviations from the Efficient Market Hypothesis (EMH). Papers 1, 4, 5, 6, and 9 all directly support the claim that behavioral finance and market anomalies explain these departures from strict market efficiency, with no papers retrieved that refute the premise.