This research examines whether the presence of changes in largest shareholders affects the correlation between stock returns and reported earnings. To achieve this, we analyze whether there are differences in earnings response coefficients based on the occurrence of largest shareholder changes. Prior studies have highlighted that changes in largest shareholders, which have a significant impact on companies, bring about substantial transformations throughout the organization and hold significant implications for capital market participants. Notably, such changes have been known to introduce increased uncertainty, leading to negative repercussions for companies across various dimensions. Building upon this understanding, this study seeks to expand on existing research by investigating how market participants assess the issue of largest shareholder changes. For empirical analysis, a sample of 13,283 firm-year observations listed on the Korea Exchange from 2012 to 2019 is utilized. Data is collected from the electronic disclosure system(KIND) to measure the occurrence of largest shareholder changes. Empirical findings reveal that largest shareholder changes have a statistically significant negative impact on earnings response coefficients. The outcomes of this study provide additional insights to existing research that directly analyzes the influence of largest shareholder changes on firm characteristics. A distinctive aspect of this research lies in its examination of how such changes are perceived by capital market investors, differentiating it from prior studies that predominantly scrutinized the impact from a corporate perspective. Moreover, by empirically reaffirming the negative perception and evaluation of largest shareholder changes within the capital market, this study offers implications for investors and regulatory authorities.