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The aim of this study is to investigate the effect of governance in higher education on university restructuring from a cross-national perspective. The data used for the study was a balanced panel data with 368 observations covering the 8 years from 2007 to 2014 including 46 countries collected from Global Competitiveness Index (GCI) and the UNESCO Institute for Statistics. Random effects model was conducted to estimate the relationship between higher education governance and organizational changes of universities. To capture university restructuring, I used three measures as dependent variables: Marketization of higher education institutions, circuits of knowledge, and quality of higher education institutions. The results showed that financial constraint was the most influential factor which impacts the organizational changes of universities.