This study investigates how the adoption of the new accounting standard, IFRS 16 Leases, affects the value relevance of financial reporting. The study applies the Ohlson price model to determine the effects on both relative- and incremental value relevance, by utilizing market data for 2255 listed entities from 10 European countries. We measure the effects on value relevance by looking specifically at 2018 and 2019, which represent the pre- and post-implementation periods. Firstly, we examine whether the impact on the overall value relevance has improved. The results indicate that the overall value relevance in Europe is reduced by the implementation of IFRS 16. However, the incremental analysis shows that the investors find the accounting variable book value per share (BVPS) more informative after the implementation. Secondly, we examine whether the implementation of IFRS 16 has a more positive effect on value relevance in countries with low investor protection. Our results provide evidence for this statement, where the value relevance significantly increases after the implementation of IFRS 16. The incremental value relevance of both earnings per share (EPS) and BVPS is positively affected in countries with low investor protection. Interestingly, for countries with high investor protection, the value relevance has decreased. However, according to the conceptual framework, this decline is a potential short-term consequence of implementing a new standard. The findings of this study provide important insights for future standard setting by performing a detailed analysis on the value relevance of financial reporting in Europe, and how it is affected by the level of investor protection.