["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study analyzes the effects of dynamic convergence in finance from global and Japanese perspectives, focusing on sustainability outcomes (2002–2022). The study applied a system Generalized Method of Moments (GMM), a framework that addressed endogeneity and persistence in macro‐financial indicators, with diagnostic tests supporting instrument validity. Key findings show that in developing nations, more money‐market and currency‐exchange risk reduces economic sustainability, while commodity markets support financial sustainability. Gross fixed capital formation additionally promotes stability. In developed countries, stock and security markets, as well as gross capital formation, support economic sustainability, whereas money markets undermine it. Conversely, financial market sustainability grows with money, commodities, security markets, and exchange rates, but declines with higher stock market risk. In Japan, security markets improve economic output and money markets reduce it; money markets and exchange rates support financial market sustainability, whereas commodity markets and capital formation decrease it. For emerging nations, government revenue and the human development index enhance economic stability, while government spending, public debt, inflation, unemployment, and poor service quality detract from it. In developed nations, public debt, inflation, unemployment, and service quality are associated with higher macroeconomic risks, whereas government revenue, spending, and the human development index are associated with lower financial sustainability. In Japan, two drivers decisively shape macroeconomic stability: government revenue and inflation. Government revenue anchors Japan's macroeconomic sustainability, while inflation clearly threatens this stability. Other financial or economic risks exert additional pressure. The recommendation underscores the growing significance of technology, regulatory frameworks, and ESG (Social, Environmental, and Governance) principles in Japan's evolving financial system.\n"]