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Leader Ratings . There are seven leadership ratings, Political, Morale,
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Morale. This affects unit combat value in battle, determining win/loss credit, adding or recovering
fatigue for the unit’s ground elements, and rallying routed units

Did some test series on the morale impact on CV.
In the setup both sides can't shoot due to 0 range weapons and the Leader rolls Mech/Inf affecting final CV are unchanged. "Failing no rolls" and having all at 9 we would expect a 131initialCV to become 131x1.25x1.25=204finalCV of which we get about 201finalCV in tests.
From that we then change the MOR ratings and see what happens to the finalCV.

Attached scenario for testing, see Bessarabia region.

Some more tests done.
The testings above gave somewhat a "linear" impression due to the large amount of slots filled (how much i wished things would simply be percentages). But changing the Squads to be one large block and setting all leaders to rating MOR 1, gave after some runs a finalCV of 199. So the morale rolls are rolls and they can fail and succeed similar to the combat rating rolls, what multipliers they apply if failed I do not know or how often they can be applied.
But if all succeed (or at least - not fail - whichever it is) we see the normal "100% finalCV" result as if all leaders had rating MOR 9.