When you click on the unit screen and hover over the morale icon it is show how exactly the morale is composed. I've managed to make a whole army of High Morale(Elves only, with Neoka and the crown giving +1 to morale of the elves). Still i don't think morale is very usefull. It takes the base attack of the creature so in most cases it is 2-4 attack or defense in difference. i've used an army of elves and demons (demons gives -2 morale to the elves in the army) and i barely saw any difference.
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