Oh. Right. Morale level doesn't affect on MC at all. Only distance matter, and psiSkill+psiStrength. And still, victim's morale didn't change because of MC. Ever.
You might be mimicing AI behaviour when you were younger. AI was panicking unit before trying to MC.
And another thing. When you have some of your soldiers MCed, and you killed aliens meanwhile, you'll get morale penalty for those MCed soldiers. And after they will return to you - you'll notice that morale loss. But that's not because of MC, that's because of the fact of "oh god, they killed my homies!" which was not so logical for humans when aliens was killed. But that's how original worked. And that was fixed for OpenXcom.