In response to the restricted market access and declining global competitiveness facing its domestic forest industry, the British Columbian government embarked on an ambitious plan of policy reform in 2003 termed the Forestry Revitalization Plan (FRP). Forest tenure was reallocated, regulations governing the structure of the industry were relaxed and the administered stumpage system was made more market-based. Using daily returns data on 13 publicly traded forest companies that operate in the province, the impact of the FRP was analyzed using event study techniques. Results show that the announcement of the FRP generated significant negative abnormal returns for several firms. These results appear to be due to the loss of forest tenure and highlight the difficulties associated with changing property rights to forest resources in Canada.